Shropshire's main councils receive budget settlement from Government

The settlement applies to both Shropshire Council and Telford & Wrekin Council – with an 8.6 per cent rise for Shropshire and a 9.8 per cent rise for Telford & Wrekin.

However, both settlements include an expectation that the councils will increase their own council tax bill by 4.99 per cent – a move not being taken by the Telford authority which has pledged not to increase council tax.

Telford & Wrekin Council's Labour cabinet member for finance, Rae Evans, said the increase in funding was "welcome", but added that the settlement was still below the rate of inflation, and effectively amounted to a budget cut.

She said: “I’m glad to see that Westminster has recognised the vital role local councils play in supporting residents through the national cost of living crisis.

"Any increase in funding is welcome, but don’t be fooled. On the face of it, Telford and Wrekin stand to get a 9.8 per cent increase in cash from the Government compared to last year, but this isn’t the reality.

“In their calculations, the Government have assumed that we will increase local council tax by five per cent. During a cost of living crisis, this is something we’re not willing to do. In fact we have committed to freezing general council tax in Telford and Wrekin to keep people’s bills as low as possible.

“Furthermore, the 9.8 per cent increase is still less that the current rate of inflation, so the money we will receive is actually worth less than it was last year. It’s essentially a budget cut – all at a time when more people than ever are coming to us for help.

“As is often the case with something like this, the devil is in the detail. In the coming weeks, we’ll be running through the settlement with a fine tooth comb to understand the implications and ensure our plans reflect the latest position.”

Shropshire Council's Conservative leader, Lezley Picton, said that the settlement would provide some help for the authority, but "doesn’t alter the scale of the budget challenge we face".

The council is planning around £50m of cuts which it says will largely be delivered by changing the way it provides services – rather than cost-saving closures.

Councillor Picton said: "While this gives us some help to address the pressures arising from inflation, which is very welcome, we must also contend with the demand pressures and funding gaps created by the pandemic. Most importantly, it doesn’t alter the scale of the budget challenge we face and what we need to do.

“We still have a budget gap of around £50 million that we must and will close. The proposals we have put forward will do, this largely through transformation; so having the minimum impact on services, particularly for the most vulnerable.

“It also shows that Government has assumed in its calculations that we will put council tax up by 4.99 per cent, which is the equivalent to an extra £1.38 per week for a Band C home in Shropshire.”