Shropshire Council reveals proposals for councillors' allowances amid financial crisis

An independent panel has made a series of recommendations over allowances for Shropshire councillors.

The proposals have been put forward by an independent panel, which considered evidence from a number of councillors including the Lib Dem leader Councillor Heather Kidd, and Reform opposition leader Dawn Husemann.

There were written representations from the Liberal Democrat, Conservative and Labour groups before the panel issued its recommendation.

The plans will be put before the full council for approval next Thursday (September 24).

The proposals, for the 2026/27 financial year, include freezing the basic allowance provided to all councillors of £14,839.11.

The authority, like other councils, provides extra ‘special responsibility allowances’ (SRAs) for councillors who hold significant posts, such as the leader, deputy leader, opposition leaders, and portfolio holders.

Under the plans seven of the allowances remain unchanged, and four are being reduced.

One role is seeing its SRA increased, while two others are being introduced for the first time, and another is being ended.

The SRAs for the council chairman, leader, deputy leader, portfolio holders, opposition group leaders, chairman of the strategic licensing committee and chairman of the pensions committee are frozen.

The council leader’s total allowance will remain at £48,226, the deputy leader at £37,097, the portfolio holders at £29,678, opposition group leaders at £22,258, and the chairman of the strategic licensing committee and chair of the pensions committee, both at £18,548.

The SRA for deputy portfolio holders is being reduced to a total of £17,061, along with allowances for chairs of scrutiny committees, chairs of area planning committees, and vice chairs of area planning committees.

The SRA for the chairman of the licensing sub-committee/vice chairman of the strategic licensing committee is being deleted, while the allowance for the chairman of the audit committee is being increased by £7,719.55 to a total of £22,558.

The report comes as the council faces a severe financial crisis, which has required borrowing hundreds of millions of pounds from the Government to balance its books.

The paper prepared for the council ahead of the vote on whether to accept the independent panel’s recommendation highlighted the potential negative reaction from the public if the allowances are increased.

Under potential ‘risks’ associated with decisions on allowances it stated: “Changes which are perceived as increasing councillor remuneration may attract adverse public or media attention, particularly given the council's financial position.”

However, it also highlighted the need to compensate councillors effectively for the commitment their role requires.

The report states: “Conversely, if allowances do not adequately reflect the level of responsibility and time commitment required, there is a risk of discouraging individuals from seeking or undertaking key leadership and governance roles.”

A vote will be taken on whether to approve the recommendations at next week’s meeting.