Bankruptcy avoided: Shropshire Council gets £190 million 'exceptional financial support' loan from Government
Shropshire Council will avoid the looming spectre of 'bankruptcy' after the Government confirmed £190 million in emergency funding.
The council's application for exceptional financial support (EFS) has been granted, in news which will be met with a huge sigh of relief at Guildhall.
The authority has been teetering on the edge of issuing a section 114 notice - the council equivalent of declaring bankruptcy - in recent months.
If that materialised the council would have been taken over by Government-appointed commissioners, with spending decisions only taken on the basis of what is legally required.
Such a move would have put a host of services under threat, along with other groups across the county which rely on council funding.
But the council's application to the Government for EFS has now been approved - understood to be £71.4m for 2025/26, and £121m for 2026/27.
