Council's £21.7m reserves remain 'intact'

Telford and Wrekin Council's financial position is in contrast to neighbouring Shropshire Council

A local authority is sitting on reserves of £21.7m and has not needed to dip into the pot, despite rising costs, a meeting has heard.

Telford and Wrekin Council said the money was for "curveballs that are thrown at the council", but the fund had been "intact for a number of years".

The council's position is a sharp contrast to neighbour Shropshire Council, which this week said it might need to borrow £100m to avoid running out of money by April.

At a meeting on Wednesday, Telford and Wrekin councillors received a report which said the costs of adult social care had risen by £5.6m, but the costs would be absorbed within the budget.

The report said the council had been "pursuing a sound financial strategy" in the face of "the most prolonged and challenging financial position it has ever faced".

Michelle Brockway, the council's statutory chief financial officer, told members the council could look to allocate more from other reserves and contingencies and could make "in-year savings" if necessary.

The meeting also heard it was likely to face a £4.66m overspend on the dedicated schools grant in the future and that "stubborn" high inflation was also a concern.

But council officers said they were hopeful of seeing an increase in their grants from the government.

This news was gathered by the Local Democracy Reporting Service which covers councils and other public service organisations.