South Shropshire Residents Urged To Submit Council Budget Feedback
Stuart Anderson MP has slammed the government's decision to shift funding away from rural areas like South Shropshire, as it proceeds with the decision to scrap a grant which had previously supported the delivery of services in rural areas.
The Rural Delivery Services Grant provided an extra £9 million to Shropshire Council last year. Yet, Ministers have now decided to "repurpose" the grant to focus exclusively on areas of deprivation, which are disproportionately urban towns and cities.
Combined with this, Shropshire Council has been allocated the third lowest increase out of more than 180 councils. It is due to recieve only half the national average funding increase – even though it is the second largest inland county in England.
This is despite Stuart having repeatedly raised the unique challenges facing councils like Shropshire, due to factors like rural sparsity and remoteness. Shropshire has less than one person per hectare compared to the national average of more than four.
This means that the Council must spend much more on travel and fuel costs than most urban councils do. As a result, it takes longer, and costs more, to deliver services in Shropshire – impacting teams from social care to refuse collection.
At the same time, the Rural Services Network has stated rural councils face "additional demands" - due not least to their ageing populations. 25.7% of Shropshire’s populated is aged 65 and over.
In Stuart's constituency of South Shropshire, this rises to 31%. In England, the average stands at just 18.6%. As a result, around £4 in every £5 that the Council spends is now spent on social care.
In response to these pressures, Stuart is supporting the Council's campaign to exempt social care providers from increases in employers National Insurance Contributions.
Meanwhile, the number of looked after children has increased by more than 80%. Due to these financial pressures, Shropshire Council is having to make the most savings of any council in England per person – representing £191 for each person.
Shropshire Council has now warned that "further reductions" in services will be needed to deliver a "balanced budget." It has said the removal of the grant is a "key pressure" and a major reduction in social care funding represents a "loss" of £16 million.
The Council has launched a consultation on budget priorities for 2025/26, saying it is "facing tough financial decisions and is seeking public input on their plans to become financially sustainable."
Proposed changes, which could save £8.5 million, include less frequent rubbish collections and street-lighting. All political parties on Shropshire Council have agreed to the public consultation before proceeding with next steps.
The Council is also seeking to raise Council Tax by 4.99% - including a 2% charge for adult social care. It comes as Shropshire Council has revealed that approximately 80% of its spending is on social care - with rising costs and increasing demand.
In its consultation document, the Council has stated that feedback will be considered alongside the finalised "total settlement amount." The government is expected to provide confirmation of final allocations within the next month.
Following representations, the decision was taken last year to increase funding for rural councils by an extra £100 million. Given the gravity of the situation, Stuart hopes that similar concessions will be made this year.
Stuart Anderson MP said:
"Rural councils face unique challenges, serving sparsely populated and aging communities. So, it is greatly disappointing that Shropshire Council is due to receive only half the national average funding increase – even though it is the second largest inland county in England. Having been allocated the third lowest increase out of more than 180 councils, Shropshire Council now has to make the most savings of any council in England per person – representing £191 for each person. Combined with this, the government has decided to plough ahead with its decision to ‘redirect’ funding previously dedicated to rural areas. Last year, it equipped Shropshire Council with an extra £9 million to deliver services. With less than one person per hectare compared to the national average of more than four, Shropshire Council must spend much more on travel and fuel costs than most urban councils do. This means it takes longer, and costs more, to deliver services in Shropshire – impacting teams from social care to refuse collection. Due to these financial pressures, the Council is looking to save an extra £8.5 million. I have made my views known to the Government and encourage others to respond to the Council's own consultation so that it can make locally informed decisions on future spending priorities."
The deadline for feedback is 26th January 2025. The quickest way to take part is by completing the survey at https://www.shropshire.gov.uk/get-involved/budget-consultation-202526/.
Assistance to take part is available at local libraries and Shropshire Local Hub. Copies of the consultation document are also available at council libraries across South Shropshire - including Bridgnorth, Church Stretton, Ludlow, and Much Wenlock.
