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Shropshire Council rejects extra increase in tax levy

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Shropshire Council has rejected the opportunity of an extra increase in council tax, sticking with plans for a 3.99 per cent rise.

Council leader Malcolm Pate said a government plan to allow local authorities to add an extra three per cent on to council tax bills for adult social care would actually leave them worse off.

He said that taking advantage of such a move would cost the council £184,000 over three years.

Current government rules mean councils are allowed to raise council tax by 1.99 per cent. Any bigger increase requires approval through a referendum. On top of that authorities are also permitted to raise council tax by an extra two per cent a year, solely to be spent on adult social care.

However, under pressure from councils the government agreed to raise that to three per cent, but only for two years, with no increase allowed in the third year.

Councillor Pate said: "It makes far more sense to raise it 2-2-2 rather than 3-3-0. That would cost us £184,000 over three years.

"I did tell the minister if you ever want to use the analogy of rearranging the deckchairs on the Titanic, then that was it."

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