Stuart Anderson MP has slammed proposed changes to council tax. Modelling suggests that reforms could strip Shropshire Council of £9 million in government funding over the next three years.
The County Councils Network has named Shropshire Council as one of sixteen local authority areas - mostly in the North and Midlands - that would see significant cuts in direct government funding, totalling £470 million by 2028.
Stuart has said that the proposed reforms could have severe consequences for residents in South Shropshire, as council tax could soar by hundreds of pounds to offset the cuts.
Stuart has added that this will place a disproportionate burden on council taxpayers in areas like Shropshire, hitting local families and pensioners the hardest.
The Government has stated that it wants to "update the system" so that it better accounts for "the differing ability of councils to raise income locally, which results from the number and values of homes within a council area."
However, the County Councils Network has 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.
Analysis has shown that £1.6 billion in council tax raised in county areas like Shropshire would be redistributed to other areas across the country. This move follows the government's decision to scrap the Rural Services Grant last year.
At the time, Stuart stated that the removal of the grant would have significant implications for rural councils like Shropshire. He added that it recognised the extra challenges faced by rural councils in delivering services.
This included the higher costs that rural councils incur due to the dispersed nature of their communities - including increased fuel costs for refuse collection.
In addition, 2021 Census data has showed that the local authorities with the highest proportions of older residents are now mainly coastal and rural areas like Shropshire.
Responding to the proposals, Stuart has added that these reforms will further exacerbate the existing disparities in funding for rural councils like Shropshire. He has urged the government to rethink the reforms.
It is the latest stage in Stuart's campaign to secure fairer funding for rural areas. Last year, he warned that April's hikes in employer's National Insurance Contributions would more than outstrip the increase in funding settlement.
In February, it was then revealed that Shropshire would be provided with exceptional financial support. This enables it to sell assets to generate revenue and cover costs.
Stuart Anderson MP said:
"It is disgraceful that taxpayers in South Shropshire will have to foot the bill for the government's botched council tax reforms. Rural areas deserve equitable funding that recognises the unique challenges of delivering public services. Having already stripped rural areas of millions of pounds in dedicated grant funding, Shropshire has now been named as one of sixteen local authorities that would lose even more funding, totalling £470 million. This would put further pressure on local services and drive council tax up by hundreds of pounds, hitting families and pensioners the hardest. Ministers must rethink these punitive plans and deliver a fair funding system that recognises the distinct needs of rural areas like ours."
