How much commissioners will cost Shropshire Council
The leader of Shropshire Council has stated how much it would cost the authority if Government appointed commissioners were brought in.
The Liberal Democrat-led administration is doing all it can to stave off the threat of issuing a Section 114 notice, which would effectively mean it would be bankrupt. If that happened, it would mean that the Government would likely appoint commisioners to take control of the council’s finances and operations.
Shropshire Council has already applied for an exceptional financial support loan of just over £200 million which would see it through both this financial year, and the next. It has also asked the Government to re-evaulate how much it would receive through its multi-year settlement.
Speaking at a Transformation and Improvement Overview and Scrutiny Committee meeting on Monday (January 19), council leader, Heather Kidd that the commissioners would cost around £3 million to £4 million a year, on top of any borrowing it took.
“We would much prefer to be borrowing to do things, rather than borrowing to make this a safe and efficient council, but that unfortunately is where we are at the present time,” said Cllr Kidd.
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She added that that the organisation currently has a rates and benefits department “that isn’t bringing in council tax as it should be” and “isn’t looking at past debts”, while legal and finance teams “are not capable anymore”.
“They have not got the expertise or the staff anymore across the board to do the jobs we need them to do to bring the income in and make the savings we have to make,” said Cllr Kidd.
“And without borrowing money, there is no other money for us to do it with.
“I would much prefer not to have to do this because it’s not a great place. And I certainly didn’t envisage becoming leader of the council where we do nothing but borrow money to make it a fitter organisation.
“But that’s where we’re going. What we will do with this money is to make it a fitter, more modern and efficient council in the future, but it’s not going to be quick and it’s not going to be easy.”
