Shrewsbury Town Council in legal threat over Shropshire Council bill
Wednesday 27th July 2011, 11:00AM BST.
Shrewsbury Town Council chiefs could take legal action over a £1.25 million bill they claim Shropshire Council has not paid, it was revealed today.
Officials at the town authority said they feared they may have to raid their investments and bonds because of cash-flow issues if the money is not received as they are concerned they would not be able to pay staff and suppliers from September.
A report says the cash is due for work that the town council has carried out on behalf of the unitary authority and has to be received by Monday.
Councillor Peter Nutting, leader of the town council, today said the unpaid bill was a huge problem.
He said: “We don’t have that sort of money in bank accounts and if we have to pull from investments we will lose out on the interest that has been accrued.
“It’s not clear why the bills haven’t been paid.”
The report to Monday’s meeting says there are a number of actions that could be taken by councillors to recoup the money if is not paid including taking legal action by instructing solicitors to pursue the debts.
But another option is to delay payments to local suppliers, although officers claim this would be “unfair” in the current economic climate
James Walton, Head of Financial Advice, said: “We have a series of agreements with Shrewsbury Town Council relating to services they provide which we are currently discussing with them.”
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The words booze up and brewery come to mind
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LOL – Robbing Peter to pay Paul
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More inefficiencies from Shirehall.
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Yes, but just trying to be a cash-strapped, hard-working family man in Ludlow, or a hard-up but working single parent in Market Drayton and be unable to pay your Council Tax. Shropshire Council would be on your back for £125 let alone £125M!
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