The pensions deficit for town hall workers in Shropshire has topped £160 million, it was revealed today.

Research from the Taxpayers’ Alliance showed the figure had grown to just over £160 million in 2008/09.

The figure is the most up-to-date available. It was released by the Taxpayers’ Alliance along with a report that shows local government pension schemes collectively face funding shortfalls of more than £53 billion.

The TaxPayers’ Alliance said 15 councils had pension scheme deficits which were more than £500 million, up from 10 councils during the previous financial year.

It warned that the cost of running the schemes was placing an “unsustainable burden” on taxpayers and council budgets.

The research found council pension schemes faced a deficit of £53 billion in 2008/2009, 27 per cent more than during the previous financial year.

It said the councils’ own actuarial estimates showed the value of assets held in the schemes fell by more than £21 billion, or 20 per cent, during the year.

A Shropshire Council spokesman said: “The Shropshire County Pension Fund is formally valued every three years.

“At the last actuarial valuation in 2007, the Shropshire County Pension Fund had a funding level of 85 per cent, which was above average compared to other local authority pension schemes in England. The next formal valuation will be later in 2010.”

The UK’s largest local authority, Birmingham City Council, which has recently warned it may have to cut up to 2,000 jobs, had the biggest deficit at £1.05 billion.

It was followed by Fife Council at £835 million and Lancashire and Kent county councils at £748 million and £740 million respectively.

Previous research carried out by the TaxPayers’ Alliance showed that employer contributions to the Local Government Pension Scheme cost the equivalent of £1 out of every £5 that is paid in council tax.

But the group said on top of these costs, the huge deficits the schemes were sitting on were storing up large costs for the future.

Councils offer their workers final salary schemes, under which their final pension is linked to their pay immediately before they stop work and the number of years they have belonged to a scheme.

John O’Connell, policy analyst at the TaxPayers’ Alliance, said: “These deficits are a huge ticking time-bomb.”

By Andy Richardson