Councils across Shropshire are to receive more than £600,000 in government aid to help ailing communities survive the recession.

But authorities that will cease to exist when the unitary council comes into force have just one month to allocate the cash.

The department of Communities and Local Government announced the package with sums going to the five district and borough councils, Shropshire County Council and Telford and Wrekin Council.

The money can be tailored to local needs to help people to stay in their homes and their jobs but the authorities that will be abolished on April 1 will need to spend what they want in the next month or see the money go to the unitary.

Shrewsbury and Atcham Borough Council leader Councillor Peter Nutting criticised the way the CLG had allocated the cash claiming it would cause chaos.

He said: “While we welcome any money into Shropshire to help everyone during the economic difficulties the government have clearly got themselves in a twist and don’t understand what is going on with local councils in Shropshire.

“Not only have they caused financial chaos but they have caused financial chaos in local government.”

But a spokeswoman for the CLG said each council in new unitary areas would face a limit on the amount they could spend on their allocation to be agreed with the Implementation Executive.

She said this money would have to be diverted towards projects in the next month.

The money has been allocated as part of a £100million package confirmed by Local Government Minister John Healey for 360 councils in England.

This extra funding comes from the Local Authority Business Growth Incentives Scheme scheme that has been in operation since 2006, and rewards councils for successfully promoting economic growth in their area.

Mr Healey said: “Different parts of the country will be affected by this downturn in different ways and to different degrees – as these pressures are being felt by families and businesses, councils are best placed to provide real help locally, tailored to local needs, to help people to stay in their homes and their jobs.”

THE FUND ALLOCATIONS

Local Authority Contingency

Payment

Shrewsbury & Atcham £68,751.44

Bridgnorth £67,909.44

Oswestry £36,479.95

South Shropshire £15,052.66

North Shropshire £ 109,968.65

Shropshire £151,881.33

Telford & Wrekin £184,392.79

Total: £634,436.26

By Russell Roberts