Shropshire Council submits request to government for more than £71m in financial support
Shropshire Council has submitted its request to the government for more than £71m in support to stabilise its finances.
The authority confirmed that the application for 'exceptional financial support' was submitted yesterday - Friday, December 12.
It is understood that the application requests permission for a loan of just over £71m.
A decision on whether it is successful is expected in February.
The application comes after the council's new Liberal Democrat administration declared a 'financial emergency' at the authority following its election victory in May this year.
Papers considered by the Lib Dem cabinet earlier this month showed that the council was looking to apply for support totalling £71.361m.
It is understood that the funding would be used to address a number of issues - including an unfunded overspend in its budget of around £16m.
The council has warned that without action to address its budget shortfall then it could have to declare a Section 114 Notice - often described as the council equivalent of bankruptcy.
The reality of a 114 notice would be that government commissioners would be appointed to run the council and would take all decisions to balance the budget - cutting services and spending to meet that target within legal obligations.
Such a development would have major implications for the services the council provides and supports.
Part of the request for £71m is to add more than £5m into a contingency reserve, intended to cover any unforeseen cost rises this year.
Another element of the request is £39m to cover the money spent on the North West Relief Road - a project which was stopped earlier this year as the council investigates the financial impact of officially cancelling the project.
