Shropshire Council says it will take years to restabilise their finances

The authority has declared a financial emergency

Author: Amelia SalmonsPublished 29th Oct 2025

Shropshire Council has told us it could take years for them to restabilise their finances.

The authority declared a financial emergency on September 10th 2025.

How bad are Shropshire Council's finances?

A full report outlining the council's financial situation will be published on the 10th of November 2025.

Early indicators suggest the council could overspend by £50 million by next March, unless changes are made.

Overspending could lead to the council receiving a Section 114 Report, which would lead to Commissioners being brought in to take control of the finances.

How would effective bankruptcy impact services?

Council Leader, Heather Kidd told us what the consequences of declaring effective bankruptcy would be:

"Libraries, leisure centres and everything you would expect to have would have to stop. That is because they are not classed as a requirement for the council to deliver.

"That will have a knock on impact on mental and physical wellbeing, especially in rural areas like Shropshire," she said.

'Two or three years to stabilise'

Shropshire Council is asking for government funding to help fill the hole in their finances. Heather Kidd told us that is a short term fix:

"We want to spend the rest of the money we are asking from the government, on investing in services to solve our problems.

"You cannot do that in one year, however. We are expecting it to take two or three years to stabilise it," she said.

What is costing Shropshire Council so much money?

Heather Kidd explained some of the financial problems were inherited from the previous council.

She told us running a council in a rural area can be costly: "Any service that has to go out and work with the community will cost more because of the distance involved.

"For example, the bin lorries have to drive many miles just to collect bins.

'There will be difficult decisions'

"In Shropshire, the number of people over 65 is now around 29%. The number of people running out of money and us having to fund in care is rising," she said.

However, Heather Kidd said she feels optimistic, so long as the council gets government funding:

"We are all working as a team and I have not seen that for many years. Town and Parish Councils are also beginning to understand we need their help too.

"There will be difficult decisions but we are working really hard to make sure services can still be delivered," she said.

First for all the latest news from across the UK every hour on Hits Radio on DAB, at hitsradio.co.uk and on the Rayo app.