Council tax bills in county may rise by about 9%

Council tax bills for Shropshire Council residents may go up by about 9%, after the government gave permission to increase them by more than the 5% normally allowed.

Seven English local authorities have been permitted to do so to ease a "challenging financial position", with Shropshire Council, run by the Liberal Democrats, due to decide whether to approve an 8.99% rise this month.

The Conservatives said the decision to seek permission for the increase was deeply concerning, when people were under severe financial pressure.

The Ministry of Housing, Local Government and Communities said: "We continue to work closely with Shropshire Council on their requests for financial support."

"The final 2026-27 local government finance settlement will make available £383.2 million in core spending power for Shropshire Council, an 8.2% increase compared to 2024-25."

The council said, after confirmation of the government funding settlement, there was even greater pressure on the authority's ability to deliver essential services.

The authority is still awaiting news of its application for exceptional financial support from the government - a loan to stop the council effectively running out of money.

Most local councils are allowed to increase their share of tax bills by up to 5% and must ask for residents' permission in a referendum before hiking it further.

But the seven authorities have been given permission to bust the cap without a referendum.

Shropshire Council said the "final settlement" meant the authority would get £4.3m less in 2026-27 than projected in October.

Leader Heather Kidd stated this "latest reduction in government support places even greater pressure on our ability to deliver essential services".

The council said the proportion of older people was much higher than the England average and without "a fairer funding model that recognises the cost of delivering services in large, rural counties, Shropshire will continue to be placed at a substantial disadvantage".

Kidd added that even if an 8.99% increase were approved, financial challenges "remain significant".

Local government minister Alison McGovern said the government had only agreed to "small additional flexibilities" in the seven areas.

The cap-busting increases were lower than the seven councils requested "in almost every case", the government said, and people living in those areas would not see their bills "pushed above the national average".

North Shropshire Conservative Association said Tories had called on the Liberal Democrat administration to rule out using the full 9% permission, which "would be well above inflation".

It said the fact the council had been granted permission to go "as high as 9% should alarm every resident".

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