'Near-bankrupt' council finds £51m to balance books

Lezley Picton said it was the "most difficult financial situation" in her years in local government

A council that had declared itself "unbelievably close" to bankruptcy has identified more than £51m to balance the books for next year.

Shropshire Council will save £1.136m by cutting senior management posts plus a further £27m by axing 540 posts from its 3,500 workforce.

The authority has also applied to the government for a "capitalisation direction" – a move that allows it to sell assets or borrow to fund its transformation programme, paying costs like redundancy and consultancy fees.

Council chiefs have said a government decision on the request is expected within weeks, but they have a Plan B if they are refused it.

Conservative council leader Lezley Picton said: "This council has done what it said it would do and set a balanced budget."

Describing the issue as the "most difficult financial situation" in her years in local government, she said the authority had saved hundreds of millions of pounds since 2010.

"We want to be in control of our own destiny, and that is what we have done," she said.

The council moved out of Shirehall into smaller, more cost-effective offices

Picton said the council would not introduce three-weekly bin collections and there would be no increase in the £56 charge for garden waste collections in 2025-26.

Cuts to senior management earning more than £100,000 a year would see 20 posts reduced to 12.5. Meanwhile, employees would increase their use of digital technology.

Picton said the council would step up enforcement in areas, which included illegal parking, littering and dog fouling, and added: "We're not willing to let people get away with these things."

The authority would also work with partners, which include town and parish councils, to manage more green spaces, increase numbers of foster carers, and review highways, maintenance and outdoor services to deliver savings.

Councillor Gwilym Butler, cabinet member for finance, said there had been "significant progress", which included the council's move from Shirehall to Guildhall in Frankwell, and added: "This is the right time to be bold and optimistic."

Budget papers go before the full council on 27 February.

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