Cash-strapped Shropshire Council reveals scale of its financial problems as situation continues to worsen
Shropshire Council has confirmed the worsening state of its finances as it awaits a Government decision on a loan of up to £200m.
The latest details of the authority's budgetary position have been confirmed in its Medium-Term Financial Plan (MTFP).
The document is set to be discussed alongside the council's capital strategy at upcoming meetings of the transformation and improvement overview and scrutiny committee on January 19 and cabinet on January 21.
It sets out the scale of the council's problems - detailing how its funding gap, which sits at £129m for 2026/27, could reach £195m by 2030/31, even with the authority making more than £40m in savings every year.
The situation is compounded by the provisional financial settlement from the government, which will see the council lose money in coming years.
Any increase in spending power is reliant on the council increasing council tax, and not from central government itself.
The council faces further issues with potential borrowing costs if the Government approves a loan of around £200m to keep the authority afloat for the next two years.
