Stuart Anderson MP has responded to the Provisional Local Government Finance Settlement, which was published on 17th December 2025.
In his response, Stuart has said that the allocations represent a "bad deal" that will result in fewer services and higher taxes for rural communities like South Shropshire.
Over the next three years, Shropshire Council is set to face a £15 million reduction in government funding - making it much more difficult to deliver local services.
The Council has again applied to the Government for Exceptional Financial Support (EFS) and expects to receive a response in February 2026.
As part of his plan to support local communities, Stuart has been campaigning for more equitable to enhance public services funding in rural areas.
Stuart has said the funding allocations, which span the next three years, will mean hundreds of millions more funding will be diverted from rural to urban areas.
In November, Stuart blasted the last-minute changes which he says contradict evidence that deprivation is not the only driving force behind demand for services.
In a letter to Housing Secretary Steve Reed, Stuart said:
I am devastated that the proposed formula to factor 'remoteness' into funding allocations has been watered down. This would have accounted for the extra cost of delivering services such as home-to-school transport. It will now only be applied to social care. This decision overlooks other factors, such as the higher volume of fuel used in refuse collection."
In response to Stuart's letter, Local Government Minister Alison McGovern MP said:
"Our updated assessment of need will more effectively capture variations in demand for services within a local authority."
The Minister added:
"I am aware of Shropshire Council's financial position, my officials are discussing this with officers at the Council and I encourage these discussions to continue."
It marks a second year of reduced financial support for Shropshire, after the Rural Services Delivery Grant was replaced last year with a Recovery Fund that is weighted towards more urban areas.
However, analysis from the County Councils Network (CCN) has found that only three percent of the grant will go to rural areas like Shropshire.
The CCN added that 33 councils - including Shropshire - now face a real-terms reduction in funding, unless they increase their council tax by five per cent over the next three years.
This is despite deprivation being not the only driving force behind the increased cost of local services, which also correlate with other factors such as age and disability.
2021 Census data showed that the local authorities with the highest proportions of older residents are now mainly coastal and rural areas like Shropshire.
In South Shropshire, almost a third of residents are aged 65 and above. This is compared to around a sixth of population for urban areas.
It means that the average family in a Band D home is facing a £1,143 council tax increase across the remainder of this Parliament.
Under Labour, the average Band D council tax has already risen by £109, despite Prime Minister Sir Keir Starmer having promised to freeze council tax.
Stuart has now called for the restoration of 'remoteness' to the overall funding formula, which took into account the increased costs of delivering services across large, often rural, areas.
Over this Parliament, annual hikes in council tax will increase bills by £468 a year, taking the annual bill to £2,639 a year - equivalent to £220 a month from families' tax-home pay.
Under the Conservatives, the average change was just 3.6 per cent per year in England. This is compared to 5 per cent under Labour this year and 8 per cent under the last Labour government.
Stuart Anderson MP said:
"As part of my plan to support local communities, I have been campaigning for more equitable funding to enhance rural public services. On the last day of Parliament before Christmas, the Government published the Provisional Local Government Finance Settlement. Unfortunately, this is a bad deal for rural communities that will only result in fewer services and higher council tax. Over the next three years, Shropshire Council is set to face a £15 million reduction in government funding - making it much more difficult to deliver local services to residents. Regrettably, this marks a subsequent year of reduced financial support for Shropshire, after the Rural Services Delivery Grant was last year replaced with a Recovery Fund that is weighted towards more urban areas. I have urged the Government to restore 'remoteness' to the overall funding formula. This would take into account the increased costs of delivering services across large rural areas like ours."
