Shropshire Star

Shropshire among 84 authorities planning maximum council tax hikes

Shropshire Council has defended its plans to increase council tax by the maximum amount permitted, after it was revealed that three quarters of councils in England and Wales are planning similar hikes.

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Shropshire Council plans to increase Council Tax by 4.99 per cent in April

According to the The County Councils Network (CCN), Shropshire Council is one of 84 authorities out of 114 that provide social care, which plans to increase council tax by the maximum amount permitted in law.

Under government rules, if a council wants to increase tax by more than 4.99 per cent then it has to hold a local referendum.

The Labour vice-chair of CCN, and leader of Cheshire East Council, Sam Corcoran, said local authorities had "little choice" but to propose increasing council tax this year.

"With inflation reaching levels not seen for over 40 years and with demand-led pressures for care services showing no sign of abating, local authority leaders are setting their budgets in the most difficult circumstances in decades," Mr Corcoran said.

The Conservative-run Shropshire Council has said that increasing Council Tax from April, was "a difficult decision".

Leader of the Council, Cllr Lezley Picton (Tern division), said: "This is effectively our last chance to secure a sustainable budget, and to deliver on our priorities set out in our Shropshire Plan for a healthy population, a healthy economy and a healthy environment, supported by a healthy, well-run council.

“If we fail to do this, we will have financial control imposed upon us by Government-appointed commissioners. They will have no understanding of Shropshire’s residents, and no interest in the future.

“We recognise that many people are struggling with their day-to day bills; being asked to pay more is a very difficult decision, and we know that most other councils are in the same position."

She continued: “We still have a budget gap of around £50 million that we must and will close. The proposals we have put forward will do, this largely through transformation; so having the minimum impact on services, particularly for the most vulnerable."

However, the leader of Shropshire's Labour group, Cllr Julia Buckley (Bridgnorth West & Tasley) said the tax hike by Shropshire Council was "disgraceful and opportunist" and would add over £100 a year on bills for band D properties.

She said: "It is unnecessary because as part of the current Conservative administration’s budget proposals, Shropshire Council already plans to cut over £50 million from basic services to residents across the county in a single year.

"Those drastic cuts to services will affect our most vulnerable residents, those with special needs children, disabled adults, elderly residents needing care at home.

"But the council tax increase will affect every family, no matter how much they are already struggling to make ends meet. Once again, the Conservatives expect the most vulnerable in our county to pay the price for their mistakes.

"We only need to look at our nearest neighbours to see an alternative approach, in Telford & Wrekin Council, led by Labour Councillor Shaun Davies, where services have been protected by working in a co-operative model with community partners, as well as guaranteeing another year of a Council Tax freeze, to protect residents from the disastrous financial turmoil in the country."

The Cabinet at the Labour-run Telford & Wrekin Council voted in January to freeze general Council Tax rates, although it is increasing the social care aspect of the tax by two per cent.

Telford & Wrekin Council's cabinet member for finance, Cllr Rae Evans, said at the time the authority would "not look away" from the financial pressures being faced by residents

She said: "The Government decision to increase council tax rises to five per cent is a continuation of shifting the burden of funding local government services to our council tax payers, regardless of their ability to fund these increases.

"However, despite this high level of pressure and financial uncertainty facing the council, this budget recognises the very real financial pressure being experiences by our residents

"As a compassionate council on the side of our residents we will not be the ones to look away at a time of financial crisis for many.

"These proposals therefore reaffirm the commitment given to full council last year to freeze council tax in recognition of the cost of living emergency."