Stuart Anderson MP has pledged his ongoing support for local communities, as Shropshire Council prepares to declare a financial emergency at its Cabinet Meeting on 10th September 2025.
The Council’s latest financial monitoring report has revealed a projected overspend of £35.169 million by the end of March. This is £889,000 above current financial resources including reserves available to the Council.
This situation means that urgent action is now required for Shropshire Council to balance its budget by March and avoid government officials taking control of council finances.
Stuart has vowed to work with Council leaders to stabilise council finances and minimise the impact on residents - including the elderly and most vulnerable.
Shropshire Council has cited a lack of central government funding and soaring social care costs, which account for nearly 80% of its budget.
In November, Stuart had urged Ministers to deliver fairer funding for social care in rural areas like South Shropshire. This followed reports that Shropshire Council’s spending on social care increased from 58% just six years ago.
Data from the 2021 Census shows that local authorities with the highest proportions of older residents are now mainly coastal and rural ones, like Shropshire.
As part of his plan to enhance public services, Stuart has repeatedly urged Ministers to provide better funding for rural areas - given the extra cost of delivering essential services in large, sparsely populated areas like Shropshire.
Stuart has said that a major shake-up in local government funding had drastically reduced dedicated funding for local services. Last year, the Government removed the Rural Services Delivery Grant.
Responding to the announcement, Stuart said that the dedicated funding scheme had equipped rural councils with an extra £100 million in light of the challenges associated with serving sparsely populated communities.
Last month, The County Councils Network then named Shropshire Council as one of sixteen local authority areas - mostly in the North and Midlands - that would see significant cuts as a result of council tax reforms, totalling £470 million by 2028.
The County Councils Network warned that the new rules could "overcompensate" more urban areas, as there is little evidence that deprivation is the main driver for services other than social care.
It is the latest stage in Stuart's campaign to secure fairer funding for rural areas that he launched in October 2024. Last year, he also warned that April's hikes in employer's National Insurance Contributions would more than outstrip available funding.
In February, the government then revealed an unprecedented number of requests for extra financial support from councils, including Shropshire. This enables them to sell their assets to generate revenue and cover costs.
Stuart Anderson MP:
“Residents in South Shropshire are being greatly affected by government decisions which have stripped Shropshire Council of millions of pounds due to the removal of dedicated funding for rural councils. This has been followed by the county being named as one of sixteen areas to expect further funding cuts as a result of the government's council tax reforms. Clearly, this has devastating consequences for local services - with Shropshire Council due to declare a financial emergency. I have repeatedly called for better funding for rural areas, given the extra cost of delivering essential services in large and sparsely populated areas like Shropshire. I will, of course, do everything I can to protect residents from the impact of this situation. However, the government must now deliver a fairer funding settlement that stabilises council finances and restores the sustainability of rural public services.”
