An extra £3.3 million is flowing into Shirehall coffers which will allow Shropshire Council to boost a range of services over the coming year.

The money will also allow the authority to meet the cost of a zero council tax increase in some parts of the county and the high costs associated with additional borrowing to deliver its capital programme. Cabinet members will be asked next Wednesday to agree a revenue budget plan for 2010/11.

It will be presented to the full council on February 25 for approval.

The additional funding has come from a number of sources. These include an “over achievement” of £405,000 on the corporate savings target, an increase of £1.1 million in the council tax taxbase, £498,000 from a revision of council tax relief on empty properties and a reduction of more than £1.2 million in pay award provision.

It is proposed to use £500,000 to meet pressures on the budget for children in care due to an increase in the number of placements funded by the council.

A further £500,000, if agreed, will go towards meeting the growing costs of public transport, and £350,000 will be spent on the transition of young people with learning disabilities into adult care services.

Cabinet is also being recommended to put aside £1.04 million to met the costs of what is known as prudential borrowing, used to deliver a capital programme which includes a range of energy-saving measures with a “payback” period of between two and five years.

A report from finance chief Laura Rowley says the overwhelming majority of people that responded to the council’s budget consultation, supported this “invest to save” approach.

It is proposed to spend £150,000 on an increase in the number of service users with physical disabilities needing high care packages.

Just over £367,000 will be used to keep council tax increases to a zero level in the Oswestry and south Shropshire areas as part of plan to equalise tax demands countywide.

Total available resources for the year ahead are estimated at £371 million.

The dedicated schools grant to the authority will amount to just over £151.3 million and council tax levies will bring in more than £127.7 million.

The budget proposals from the Shirehall’s Conservative administration include a £7 million savings target.

By Dave Morris