Decision date due on Government funding support for Shropshire Council
Shropshire Council is expected to know next week if it has been successful in its exceptional financial support (EFS) request.
The Liberal Democrat-led administration is seeking just over £200 million from the Government.
This includes £71.4m to see it through the rest of the current financial year, and £130m for 2026/27.
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In total, around 100 local authorities in England have applied for EFS, with the Ministry of Housing, Communities and Local Government (MHCLG) expected to write to each council outlining its decision some time next week.
Shropshire Council declared a financial emergency last September, with its latest projected overspend being £53.261m by the end of March. A small portion of the gap – £2.516m – can be covered by the council’s financial strategy reserve.
A key date that is coming up is February 26, where full council will consider the budget for 2026/27.
However, interim chief executive, Tanya Miles, said the MHCLG “is fully aware” of its timeline and the council is confident a decision regarding the EFS request will be confirmed before that meeting.
“All councils have to sign off their budget by March 11 – it’s a legal requirement,” said Ms Miles.
“Again, MHCLG are fully aware of that. So, I’m as confident as I can be that MHCLG are aware of our timelime.
“We’re one of 100 councils in this country that have applied for exceptional financial support. We believe we will be informed at some point at next week.”
Duncan Whitfield, the interim Section 151 officer responsioble for the proper administration of the council’s finances, added that further talks were due to take place with MHCLG on Monday (February 9).
However, while he is confident the EFS application will be granted, he is “worried” about what conditions will be attached, because they are an unknown.
If the application is not granted, then it is highly likely a Section 114 notice would be declared, effectively declaring the council bankrupt.
A survey carried out by the Local Government Association (LGA) shows that a more than a third of councils – and almost half of social care councils – say they likely to apply for EFS in the next three years.
“This research underlines the reality facing councils,” said LGA chair, Louise Gittins.
“Councils are doing everything they can to protect the services people rely on but demand and costs continue to rise faster than funding, leaving many with no choice but to consider emergency financial support.
“Short-term fixes will not address these challenges. Councils need sustainable funding and reform so they can focus on prevention, growth and delivering the services communities expect.”
