Shropshire Council considered bankruptcy - leader

Shropshire council aims to save £51.4m by overhauling how services are delivered

The leader of Shropshire Council said the authority considered issuing a notice to declare bankruptcy, but decided against it.

Inflation and increased demand for services meant the council's reserves were "practically gone".

They raised the issue in a cabinet meeting in the same week that Birmingham City Council declared itself effectively bankrupt.

Leader Lezley Picton said a plan was in place to control finances.

In February, Shropshire council leader Lezley Picton said she had no option but to increase tax

Last year, Ms Picton said adult social care made up 85% of the council's entire budget. Leaving just 15% for everything else.

In February, the local authority said it had "no option" but to increase council tax, as it "suffered" from rising costs delivering services across the "very large, rural, sparsely-populated county".

No imminent crisis

Shropshire Council said it aimed to save £51.4m in the current financial year through a new plan which will overhaul how services are delivered.

Ms Picton said they could have "thrown in the towel because it's just too tough".

"The difference is we have a plan and we are working on that plan," she added.

Councillor Gwilym Butler said Shropshire council was not facing "an imminent financial crisis".

Mr Butler welcomed a financial report which showed that the council's planned savings target was on track, according to the LDRS.

"The first quarter has exceeded our expectations, and officers have worked tirelessly.

"However, we cannot be complacent - there is much to do," he said.

"The team is in control and we will continue to deliver for our residents and transform into a modern, efficient and sustainable council for the future," Mr Butler added.

On Tuesday, Birmingham City Council issued a Section 114 notice, effectively a declaration that it doesn't have the means to meet its financial liability and cannot commit to any new spending.

It is to halt all spending other than services it must provide by law such as social care, waste collections and protecting the vulnerable.

The Labour-run council needs to settle a £760m bill for equal pay claims.

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