Shropshire’s two big councils have each seen their Government grant for next year increase by more than £3 million.

There is extra cash too for the county’s police and fire services in the local government finance settlement for 2009-10 announced today.

The grant to Shropshire County Council is £90.145 million, a rise of £3.253 million (3.74 per cent). For Telford & Wrekin Council the grant is £67.415 million, an increase of £3.423 million and a rise of 5.35 in percentage terms.

It was described as “one of the best settlements in the country” by Telford MP David Wright who claimed there was no excuse for any council tax rise or service cuts.

But council leader Andrew Eade was less enthusiastic, saying the authority had no choice but to put up council tax.

West Mercia Police is being granted £121.829 million, an increase £2.971million (2.50 per cent) while Shropshire and Wrekin Fire Authority will see its grant improve by £305,000 to £7.670 million, an increase of 3.98 per cent.

Shropshire County Council spokesman Simon Alton said the settlement was “as expected”.

At Telford & Wrekin, Councillor Eade said the borough’s grant was neither new news nor new money.

“It comes as no surprise to the council and we have already worked this intoÊour three-year budget strategy which we announced in early 2008,” he said.

“However, the Government’s announcement does not highlight the so-called ‘damping’ that is applied to councils like Telford & Wrekin.

“Through this people in the borough lose out on the formula grant settlement as it is applied to other councils, typically in the south.

“Over this three-year period, the council will lose out to the tune of £18 million and it is this which makes it impossible for us not to raise council tax.”

But he added: “Nevertheless, this council remains committed to bringing the level of any council tax increase down to below 3.5 per cent by 2010/11 and to reduce the council’s use of balances to below £1 million a year by the same date.”

By Dave Morris