Shropshire Star

‘Unfair’ funding blamed as Shropshire council tax rising by 3.99 per cent

Council tax is set to rise by 3.99 per cent in Shropshire as the local authority attempts to find another £18.5 million worth of savings in the next council year.

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Shropshire Council bosses have said financial pressures from spending on adult social care coupled with what has been branded as an ‘unfair’ government funding model has led to the council proposing the increase.

The authority’s director of finance James Walton said ahead of a meeting next week that the general council tax will rise by 2.99 per cent, and an additional one per cent will be put on top for adult social care, with the cost of providing the service rising by £8 million to £10 million every year.

With the government settlement for next year still uncertain, £25 million is being put aside to manage the budget next year, and up to £6 million of reserves will be used this year to balance the budget.

Despite the county facing budget cuts across the board, Mr Walton said the purchase of Shrewsbury’s shopping centres had brought in £2.4 million in revenue in this financial year, which will go towards some services.

He said: “We are trying to deliver services in the best way we can to meet demand, but we are up against it with the cost pressures and the reduction we get in funding.

“Adult social care costs are rising by £8 million each year and children’s services are rising steeply as well.

“You can’t keep using reserves as a long-term solution so we have already put £25 million aside to help us manage the budget over the next two years.

“This is because we set the figure we receive from government four years ago and this year will be the last time we know for certain what we are going to receive from this central funding.

“After that we don’t know. The next financial year after this one we just don’t know what we are getting from the government.

“It could be that we get a bigger slice of the funding cake, but it may be that we get less. That is why I have had to be prudent and set this money aside so we are not in a disaster situation this time next year. It really is quite an unfair funding model.”

A consultation is still ongoing and a report will go before cabinet next week, before having to be ratified by the council on February 28.