Shropshire Council reacts to government’s Fair Funding Review

Shropshire Council is extremely disappointed with the government’s recent funding decision.

The government’s Fair Funding Review was supposed to make funding fairer for councils like Shropshire, but instead it will leave it with less money and make it even harder to provide essential services.

Over the next three years the council is facing a £15m reduction in government funding, with other funding still subject to review. This funding shortfall will make it much more difficult for Shropshire Council to deliver the services that matter most to local people. The council will have to make tough choices about what it can afford to provide in the future.

Councillor Heather Kidd, Shropshire Council’s Leader, said:

“Labour have let Shropshire down again with this funding settlement, despite repeated promises to fix the funding gap between rural authorities and our urban counterparts.

“We are down significantly in 2026/27 compared to projections from October, due to the fact that ministers have ignored the higher cost of delivering rural services, removing the remoteness factor from most of our funding. It’s clear that rural services will suffer as a result.

“What’s more, it is clear that ministers expect us to put Council Tax up by the maximum every year to counter this. Sadly, that won’t come anywhere close to fixing Shropshire’s £50 million deficit, with social care pressures likely to be over £20 million next year alone. We will have to make very difficult decisions as a result, and must change our service offer.”

Shropshire Council charges less for Council Tax than the average across England and, with fewer people living in the rural county, it leaves the council at a significant disadvantage under the government’s approach.

Heather added:

“We remain committed to standing up for Shropshire and urge the government to reconsider these plans before they cause serious harm to our local communities. Right now, this policy places the burden of national decisions onto local councils, forcing us to raise Council Tax just to keep essential services running.”