Conservatives’ last Shropshire Council budget was 'absurd and ridiculous' - senior Lib Dem
The councillor in charge of Shropshire Council’s finances has labelled the budget set by the previous Conservative administration as “absurd and ridiculous”.
A financial emergency was declared by the council’s cabinet last month due to the dire situation the authority finds itself in.
The council has two accounts: the revenue account, which is supplied with day-to-day income; and the capital account, which can be used to invest and borrow for major projects.
Latest figures show that the position has actually worsened. As of August 31, the council was projecting an overspend of £35.531 million – that figure was £362,000 higher than the projection from the previous month which was presented to cabinet shortly before it declared a financial emergency.
It means that the authority could be in an illegal financial position by the end of March, and immediate emergency measures need to be taken to prevent a Section 114 notice being issued and Government commissioners called in.
The council is currently working with the Local Government Association (LGA) to improve the position, with an independent chair set to be appointed on the newly-formed Improvement Board early next month.
LGA funding has also been secured to provide additional support.
“The results show what an absurd, ridiculous budget was set by the last Conservative administration in February,” said Councillor Roger Evans, portfolio holder for finance.
“Their expectation was of saving the £41m that they had failed to make last year plus another £19m for this year: a total of £60m. This was after using all the council reserves they could in previous years, leaving every cupboard bare.”
Shropshire Council has also published its Medium-Term Financial Strategy (MTFS) for 2026/27 to 2030/31 which lays out the process it proposes to make to deliver a sustainable financial position.
This includes:
Working with town and parish councils and other partners to develop a new approach to delivering services in communities
Developing a revised and balanced MTFS alongside a new Shropshire Plan
Targeting capital investment to improve income generation, reduce revenue spend, and “benefit communities”
Taking the “difficult decisions” that have not been made previously including possible short-term reductions to services and levels of service provision, whilst meeting its statutory requirements, and increasing fees and charges
“It will take time, but we will make those tough decisions the Conservatives failed to make,” said Councillor Evans.
“We will develop a revised and balanced strategy alongside a new realistic Shropshire Plan. This will involve us looking at ways we can invest money to increase future income and working with partners, true partners who will, I promise, be treated as equals.
“For both this year and the next one, we expect to need help in developing into that sustainable council we need to be. This may well need us to make requests to government for financial help and/or explore other areas which could provide us with that much needed e extra finances to make those changes.”
Cabinet will discuss the latest reports next Wednesday (October 15).
