Full Council agrees Council Tax rise

Following years of real-term reductions in funding from central government, Shropshire Council has today Thursday (26 February 2026) announced that Council Tax will go up by 8.99%. The decision was debated and approved by Full Council on 26 February 2026. The rise in Council Tax will take effect from 1 April 2026.  

The annual and monthly increases in Council Tax are shown below for Shropshire Council only. These figures don’t include the police, fire service or town and parish precepts: 

The decision to raise Council Tax is due to severe and ongoing financial pressures that are driven by: 

• Years of real-term reductions in funding from central government. 

• Increased demand for social services for adults and children. 

• Rising costs from private-sector providers of social care services. 

• The difficulties in providing services over a large, sparsely populated county. 

• The fact that Shropshire has a much older population than the national average, placing extra demand on adult social care services. 

• A freeze of Council Tax for six whole years (from 2010 to 2016) meant that the council received less income during this period, and this has led to a knock-on effect in recent years. 

Older people represent 26.4% of Shropshire’s population, compared to the England average of 18.7%. Put together, these pressures mean that Shropshire Council consistently faces a long-term funding gap, where there are insufficient funds coming into the council to provide the 800+ services that the council is legally required to deliver to its residents.  

The decision to raise Council Tax follows the granting of special permission from the Government. Normally, in England, Council Tax rises are capped at 4.99%. However, as part of Shropshire Council’s application to the government for Exceptional Financial Support (EFS), the council was granted permission to increase Council Tax by an additional 4%. 

EFS was granted on 23 February 2026, with the council to receive £71.4 million for the 2025/26 financial year, and £121 million for the 2026/27 financial year. It is important to note that EFS is a loan – and will need paying back with considerable interest.  

The rise in Council Tax will bring in around an additional £8.8 million. This money would reduce the amount that Shropshire Council needs to borrow, which will lower interest rates over coming years, meaning that repayments would be lower. Were the council not to raise Council Tax, the financial situation would become increasingly precarious: the likely outcome would be that the council would not be able to approve a balanced budget for 2026/27. Doing so would be illegal, and the council would then be forced to declare a Section 114. This would mean effectively handing over all decisions made by the council to government-appointed commissioners, with the very high likelihood that extensive cuts would be made to services.  

Shropshire Council has put in place an extensive range of support for residents who face financial difficulties, which people can find here: Council tax assistance | Shropshire Council

Councillor Heather Kidd, Leader of Shropshire Council, said: 

“My administration and I do not want to increase Council Tax by 8.99%. Unfortunately, the truth of the matter is that central Government has really given us no choice: government funding for Shropshire has decreased in real terms, whilst the cost of adult and children’s social care continues to rise. 

“We are effectively being asked to provide more essential services to the people of Shropshire with less money than ever before.  

“Without the extra income from the rise in Council Tax, Shropshire Council would almost certainly have to declare a Section 114 notice and effectively hand power over to government-appointed commissioners. We cannot let this happen. The issuing of a Section 114 notice is often talked about as ‘declaring bankruptcy’. But that’s not true. Debts are not wiped. There is no clean slate. There is no ‘magic money tree’, and any money will need to be paid back. 

“Likewise, although I am relieved that we have been granted EFS, I must stress that this is not ‘free money’. EFS is a loan that will need repaying – with interest. The rise in Council Tax, plus the granting of EFS, gives us a breathing space: a chance to implement our Improvement Plan and to become financially sustainable. But that will take time. 

“I would also like to emphasise my concerns for Shropshire people who are struggling financially. When we talk about these huge sums of money, we must never forget the people we’re here to serve. If you’re going to struggle to pay the increase in Council Tax, there is support for you – please use it.” 

Further information 

• In England, a local authority can normally increase Council Tax by a maximum of 4.99%. 

• The decision by central Government to permit Shropshire Council to increase Council Tax by 8.99% is recognition of the council’s ongoing precarious financial situation. 

• Central Government approved the rise in Council Tax as part of its granting of Exceptional Financial Support (EFS). 

• Over 100 local authorities have asked for Exceptional Financial Support (EFS). 

• Shropshire has seen a real-terms reduction in central government funding for several years. 

• Costs for services – especially social care – continue to rise, but funding has not kept pace with that increase. 

• The issue is made worse in Shropshire due to a number of factors, including: a much higher ageing population compared to the national average, meaning that more elderly people require council services; and the fact that Shropshire is a large, rural, sparsely populated county, making it difficult for services to reach vulnerable residents. 

• Even with an increase, Shropshire Council’s Council Tax remains below average when compared with other unitary authorities. 

• EFS was granted on 23 February 2026, with the council to receive £71.4 million for the 2025/26 financial year, and £121.4 million for the 2026/27 financial year. It is important to note that EFS is a loan – and will need paying back with considerable interest.  

• The increase in Council Tax will bring in around £8.8 million in additional revenue. 

• Considerable financial support for residents who are struggling financially is available here: Council tax assistance | Shropshire Council