MP writes to Government calling for urgent support to help Shropshire Council avoid 'bankruptcy'
An MP has written to the Government calling for urgent support to help Shropshire Council safeguard essential services and avoid issuing a Section 114 notice.
North Shropshire MP Helen Morgan has written to the Secretary of State for Housing, Communities and Local Government, Steve Reed MP, amid the authority's deepening financial crisis.
She said the council facing a projected overspend of up to £64 million this year, following what she described as "16 years of chaotic Conservative rule".
The council has asked for what is called 'Exceptional Financial Support' as it seeks to avoid the local government equivalent of bankruptcy - issuing a Section 114 notice.
Raising the issue in Parliament on Thursday (November 13), Mrs Morgan asked the Leader of the House of Commons, Sir Alan Campbell, to press the Secretary of State to meet with Shropshire's MPs to discuss urgent financial support. He pledged his support to her request.
Mrs Morgan described the situation as "incredibly serious" and blamed successive governments for failing to recognise the rising costs of delivering services in rural areas.
In her letter, Mrs Morgan warned: "Without short-term help from central government, a Section 114 notice is inevitable. That would mean drastic cuts and decisions being taken out of local hands. We need urgent funding to stabilise the budget and protect vital services for residents."
Mrs Morgan said the council's financial challenges have worsened in recent years, with £90 million of cuts made in the past two years alone, and costs for adult social care continuing to escalate sharply.
The authority, which declared a "financial emergency" last month, has been open about its deteriorating position. It has already requested "urgent" help from the Government through emergency funding to avoid the local government equivalent of bankruptcy.
The Liberal Democrats, who took control of the council earlier this year, said a "deep dive" into accounts in May revealed a "major in-year budget gap".
Since taking office, councillors have implemented emergency measures to halt spending and reduce costs. However, Mrs Morgan warned these steps will not be enough without Government intervention.
"Councillors were elected to sort out this crisis and they are working tirelessly to do so," she added.
"But they need the Government’s backing to prevent commissioners being parachuted in and to ensure services can continue."
The North Shropshire MP has requested an urgent meeting with the Secretary of State, alongside county MPs, to agree a package of "exceptional financial support", including multi-year funding to stabilise the council’s finances.
