Shirehall leader Keith Barrow has pledged to be “open and honest” as Shropshire Council and the rest of the public sector prepares for a funding squeeze and a decade of spending cuts.

But he said that promises will be kept next year to limit council tax increases to no more than 3.5 per cent, with again no hikes for householders in the Oswestry and south Shropshire areas as the unitary authority continues to equalise rises across the county.

Councillor Barrow, whose Tory administration took power last June in a landslide victory, will shortly be starting its medium term budgetary process.

He said the administration is changing the way the Shirehall is run and is determined to put “residents first”, involving them in decision-making on key issues.

Regarding the budget,he said: “There will be debate. No decisions have already been taken.

“We have to make savings and look at everything we are doing.

“We have got to be open and honest and listen to the public.”

Local authorities have to a certain extent escaped the effects of the recession working on a three-year budget cycle.

But it is expected that their funding will be severely reduced from 2011, whichever party is in Government.

“As a new council we want to face the challenges head on and find innovative, creative ways to work, that will minimise the impact on our services,” said Councillor Barrow.

“It’s not just a challenge for this council. Businesses, organisation and the Government all have to change the way they work.”

He said that public consultations would be meaningful and he wants the authority and its members to be held accountable.

Councillor Barrow said the switch to unitary status had already produced big savings and placed the county in a better position to face the financial challenges ahead than it would have been if still made up of individual councils.