Local authority suggests five percent council tax increase to meet major social care demand

Shropshire Council is setting out a plan that is set to bring its budget into balance and save the local authority £50.6 million in 2023.

One of the main ways of raising more money for the council is a suggestion of increasing council tax by 4.99 percent, especially to deal with increasing social care pressures.

The local authority says that unprecedented difficulties due to the coronavirus pandemic and economic conditions have left it with a £36 million budget challenge. If it was not for these global challenges, Shropshire Council says its budget would still be in balance.

Its new Financial Strategy, which will be presented at a Cabinet meeting on 14 December 2022, will set out a five-year plan to bring the budget into balance.

Shropshire Council highlights its plans will require some “difficult challenges” but that it does not have any other option.

According to the local authority, social care currently accounts for 78 percent of its budget. However, the council is continuing to see soaring demand for social care services, along with other pressures linked to the cost-of-living crisis.

In a statement about its new financial plans, Shropshire Council said: “Shropshire is hit hard because of its unique nature: one in four of its people are aged 65 or over, compared with around one in five for other English councils, while its sparse rural nature means it costs more for many services, particularly when fuel costs are high.”

Taking this into account, the local authority is proposing to increase council tax by 4.99 percent. This includes a two percent precept the UK Government had already assumed it will make to support adult social care. It could help fund assistive technologies for residents who are eligible for social care.

Shropshire Council says the 4.99 percent increase equates to £1.38 a week for the average household in Shropshire.

This increased council tax would give the council an extra £10 million. The local authority says that the increased efficiency within the council would still ensure that key services supporting local people would be protected.

Lezley Picton, Leader of the Council, said: “We recognise that many people are struggling with their day-to day bills; being asked to pay more is a very difficult decision, and we know that most other councils are in the same position.

“But these proposals will enable us to ensure that vulnerable adults and children are protected, and other vital services such as waste and recycling collections, highways maintenance, flood defences and libraries can continue to be provided. We are determined that the council will be led by local people’s priorities, and not by the state of the economy.

“This is effectively our last chance to secure a sustainable budget, and to deliver on our priorities set out in our Shropshire Plan for a healthy population, a healthy economy and a healthy environment, supported by a healthy, well-run council.

“If we fail to do this, we will have financial control imposed upon us by Government-appointed commissioners. They will have no understanding of Shropshire’s residents, and no interest in the future.”

Lezley said that some of these decisions will be unpopular but will ensure services are better delivered.

“For example, our Stepping Stones project will provide safe care for vulnerable children, but at lower cost; assistive technology will help people to continue to receive care at home but with less need for carers,” continued Lezley.

Other cost saving suggestions include increasing fees and charges, such as for car parking.

All these budget proposals will be subject to public consultations, and specific changes may need further consultation before proceeding, the council underlined.

Final proposals will go to Full Council on 2 March 2023 when the budget must be agreed.

At the start of this year, Shropshire Council launched a helpful directory for residents to find out more about how they can access assistive technology products and services. The directory covers a wide range of topics, including help to stay independent, equipment and adaptations, support for unpaid carers, fall prevention, what adult social care services are available, and much more.