Major reforms to council funding formulas will bring 'huge benefits' to Shropshire Council and residents says MP
Major reforms of the "outdated" council funding system will bring "huge benefits" for Shropshire Council and county residents, an MP has claimed.
The Government has announced an eight-week consultation on reforms to funding systems for councils that would change how cash is allocated.
The planned "overhaul" will see the introduction of new place-based, focussed formulas to funnel cash towards councils that are "most in need".
The "fairer funding" system will replace decade-old data and "outdated" funding system, and is aimed at getting councils "back on stable footing", the Ministry of Housing, Communities & Local Government said.
The Government added that new formulas will "recognise the remoteness of areas" and account for the additional costs in delivering services in rural places.
Labour MP for Shrewsbury Julia Buckley said reforms will bring change in the region and aid cash-strapped Shropshire Council.
She said: "No question about it, this will make a huge difference to Shropshire Council and how it goes about delivering services - and therefore it’ll mean huge benefits for the people of Shropshire.
"This newly-announced overhaul of the way in which local councils are funded seeks to fix the unfair, outdated system, and will allocate money according to need.
"This is exactly what Shropshire Council have been asking for over the last decade. The previous government abandoned Shropshire.
"At last, central government wants to identify rurality alongside deprivation. What does this mean? It means recognising that delivering services in rural locations costs more money, with their vast geographies and older demographics.
"The new consultation aims to include consideration of population sparsity, distances travelled, recruitment issues and the cost of supporting day visitors from the tourism economy - without their council tax contributions. I will work alongside Liberal Democrat council leader Councillor [Heather] Kidd to ensure Shropshire maximises this opportunity."
Council leader Councillor Heather Kidd has also welcomed the announcement.
"We've waited so long for the chance to change the way very rural areas like ours are funded," she added. "I have been standing on a personal soap box about unfair treatment of rural areas since leading South Shropshire District Council. We must now make sure it delivers for us."
