Council awarded £192.8m in loans by government

Shropshire Council has been awarded loans totalling £192.8m by the government.

The exceptional financial support (EFS) will be used by the authority to balance its budget.

For the 2025-26 financial year, it has been given £71.4m, and for 2026-27 it has been given £121.4m.

Leader Heather Kidd said: "Any money that we borrow from the government will need to be paid back over time. Therefore, we will continue to work hard to ensure that we only borrow what we absolutely need."

"Receiving EFS will require us to receive an independent review of the council's financial position and governance arrangements.

"This will include a detailed look at the progress we are making with our plans to achieve financial sustainability over the coming years, including all the actions covered in our Improvement Plan.

"We won't be able to rely on EFS indefinitely, which is why we need to continue to improve and become sustainable."

The council announced a financial emergency last September.

By 31 December, the forecast overspend for this financial year had reached £53.2m, an increase of £2.516m on two months earlier.

However, the council said the rise could be managed by releasing the extra amount from its established financial strategy reserve.

The proposed budget will be presented to full council on Thursday for consideration and agreement.

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