'Residents deserve reassurance': Shropshire Tories respond as council given permission to raise council tax by nine per cent

Shropshire Council has been taking measures including declaring a financial emergency to try and avoid a section 114 notice being issued, which would effectively mean the council declaring itself bankrupt.

Now the cash-strapped unitary authority is among seven councils that have been granted permission to increase their council tax beyond the core 4.99 per cent limit, without holding a referendum, to ease a “challenging financial position”, the Government has announced.

It is part of a three-year settlement for local authorities which the Government has finalised, making around £78 billion available throughout England.

Local government minister Alison McGovern said Shropshire, Worcestershire and North Somerset councils can raise their share by a maximum nine per cent.

Reacting to the news, the North Shropshire Conservative Association (NSCA) said that every resident should be alarmed if they see their council tax increase by nine per cent.

“This would be well above inflation, far above the normal limit, and higher than anything imposed when Conservatives were running the council,” said a NSCA spokesperson.

“Just days ago, the council said its financial situation could be managed. If that is true, residents deserve reassurance that they will not be hit with a near-double-digit tax rise.

“We will strongly oppose any attempt to push a nine per cent increase onto hard-working families and pensioners who are already struggling with rising costs.”

Councillor Alex Wagner, deputy leader of Shropshire Council, said: “This four per cent council tax rise will raise around £9 million – but that doesn’t even come close to covering Labour’s £13 million cut to Shropshire’s funding.

“Even after asking residents to pay more, we’re still over £4 million worse off.

“This isn’t about spending choices locally; it’s about a national funding system that is leaving counties like Shropshire short-changed and forcing councils into impossible decisions.

“How is it possibly fair that urban councils without the same social care pressures and without the costs of rurality are receiving millions more, whilst authorities like Shropshire languish under Labour?”

Full council will be asked to consider the budget for 2026/27 later this month.