Why is council tax going up?

Our financial position 

Shropshire Council is facing severe and ongoing financial pressures, driven by: 

  • Years of reductions in government funding 

  • A structural deficit caused by rising demand, especially for costly statutory services like social care

  • High levels of inflation and increased fees from providers for residential and social care placements 

  • The difficulty and cost of delivering services across one of England’s largest and most rural counties, with an above‑average ageing population

  • The demand for adult social care and children’s services continues to rise. Older people represent 26.4% of our population, far higher than the average in England of 18.7%
  • We froze council tax for six whole years (from 2010 to 2016). This meant that we received less income during this period, and has led to a knock-on effect in recent years, and contributed to our current financial pressures

Exceptional financial support 

We've been awarded 'exceptional financial support' (EFS) from the government, which will enable us to balance the budget this year and next. This offers temporary relief, but doesn't solve the long‑term funding gap. 

Borrowing more increases the amount we must pay back — including interest — in future years. 

What we're doing to help ourselves 

We're taking significant and proactive steps to put our finances on a sustainable footing. While EFS and a council tax rise are part of the solution, we're also undertaking major internal reforms to reduce costs, improve efficiency, and strengthen financial governance. 

Declaring a financial emergency (September 2025) 

In September 2025, we declared a financial emergency, recognising the scale and urgency of the financial pressures we face. This was a necessary step to accelerate decision‑making and introduce stronger financial controls. 

Introducing our Improvement Plan 

In response, we rapidly developed and began delivering a comprehensive Improvement Plan, building on recommendations from our corporate peer challenge and aligned to the challenges identified by our external auditors. 

The plan focuses on: 

  • Strengthening financial management

  • Improving governance and accountability

  • Reducing reliance on short‑term fixes

  • Ensuring that services are financially and operationally sustainable

Financial sustainability strategy (in development) 

A new financial sustainability strategy is being developed as part of our medium-term financial plan (MTFP) refresh. This will set out how we'll balance the budget in future years, reduce borrowing, and align spending with available resources. 

New corporate plan 

A refreshed corporate plan will follow, ensuring that every pound spent is clearly linked to priority outcomes for Shropshire residents and communities. 

Independently led Improvement Board 

To oversee progress and ensure transparent, robust challenge, an independently chaired Improvement Board is now in place. This board monitors delivery of the Improvement Plan, tracks performance, and provides assurance to government that we're taking the situation seriously and acting responsibly. 

How this supports our long‑term position 

Together, these actions mean that we're: 

  • Reducing financial risk

  • Strengthening oversight and accountability 

  • Improving our ability to plan for the long term 

  • Ensuring resources are focused where they're most needed 

  • Demonstrating to government that we're taking responsible steps to close the funding gap

These internal reforms sit alongside the proposed council tax rise and are essential in ensuring that Shropshire Council becomes financially sustainable — not just this year, but in the years ahead.