Budget proposals close record gap: savings to manage inflation increases and ongoing consequences of pandemic 

Shropshire Council is to propose a transformation and efficiency programme that will clear the way for delivering The Shropshire Plan and bring its budget into balance. If agreed, the proposals will save £50.6m in the next year. 

Ongoing impacts of the pandemic and economic conditions, particularly the effects of inflation and rising energy costs, are at the root of a £36m budget challenge facing the council.  

If it had not been for these national and global economic factors, the council’s budget would be in balance.  

The Financial Strategy proposals published today (as part of Cabinet meeting agenda for Wednesday 14 December 2022) lay out a clear plan for the next five years to bring the council budget into balance. This will require greater efficiency and some difficult decisions, together with a very clear focus: but we have no other option. 

Pressures are continuing from increased demand for services, particularly for social care, which currently accounts for 78% of the council’s budget, while new pressures linked to the cost of living are seeing further demand for support and services from residents. 

Shropshire is hit hard because of its unique nature: one in four of its people are aged 65 or over, compared with around one in five for other English councils, while its sparse rural nature means it costs more for many services, particularly when fuel costs are high. 

But Shropshire is in a similar place to all other councils and, in line with the Government’s expectations, is proposing to increase council tax by 4.99%. This includes a 2% precept the Government had already assumed it will make to support adult social care. 

A 4.99% increase is equivalent to £1.38 a week for the average household in Shropshire (the local average is band C). The rate of council tax in Shropshire is already 6% below the average for unitary councils such as Shropshire.  

Even then, the proposed increased in council tax would only provide an extra £10m, and inflation alone is having a £43m impact on the council. However, the increased efficiency within the council would still ensure that key services supporting local people would be protected.  

Lezley Picton, Leader of the Council, said:-

“We recognise that many people are struggling with their day-to day bills; being asked to pay more is a very difficult decision, and we know that most other councils are in the same position. 

“But these proposals will enable us to ensure that vulnerable adults and children are protected, and other vital services such as waste and recycling collections, highways maintenance, flood defences and libraries can continue to be provided. We are determined that the council will be led by local people’s priorities, and not by the state of the economy.  

“This is effectively our last chance to secure a sustainable budget, and to deliver on our priorities set out in our Shropshire Plan for a healthy population, a healthy economy and a healthy environment, supported by a healthy, well-run council. 

“If we fail to do this, we will have financial control imposed upon us by Government-appointed commissioners. They will have no understanding of Shropshire’s residents, and no interest in the future. 

“We will take some unpopular decisions, but this will be about delivering our services better and more efficiently. 

“For example, our Stepping Stones project will provide safe care for vulnerable children, but at lower cost; assistive technology will help people to continue to receive care at home but with less need for carers. We would stop altogether the use of B&B accommodation to house people who are temporarily homeless.”  

Most of the savings proposed are efficiencies, and only a small number will directly affect the public. These include, for example, increasing fees and charges – including for car parking – and charging for green waste collections during 2024 as part of wider push to encourage residents to minimise the waste they produce.   

All these budget proposals will be subject to public consultations, and specific changes may need further consultation before proceeding.  

Final proposals will go to Full Council on Thursday 2 March 2023 when the budget must be agreed.