Shrewsbury MP considering council funding rebellion

Daniel Kawczynski said he wanted to form a deputation of about 20 Conservative MPs

A Conservative MP could ask colleagues to rebel against the government over the funding it gives councils.

The government had proposed a total package worth of £64bn, an increase of 6.5% compared with the year before.

On Wednesday it promised an extra £500m. Shrewsbury and Atcham MP Daniel Kawczynski said he would consider that offer.

He said he wanted to know if the extra money would be enough to help Shropshire Council.

The council has warned of further budget cuts this year, as it attempts to reduce its deficit and avoid the need to issue a Section 114 notice, effectively declaring itself bankrupt.

A number of councils across England, including Birmingham City Council, have already taken that step.

The government is currently consulting on the amount of funding available to councils in England from April, but is under cross-party pressure to offer more.

Rishi Sunak has come under pressure to increase the amount of money paid to local authorities

Earlier this week more than 40 Conservative MPs wrote to Prime Minister Rishi Sunak warning about the combined impact of council tax rises and cuts to services.

They urged him to increase the funding settlement ahead of a vote on the issue in February. Council leaders asked for an extra £750m.

The government has responded by offering single-tier and county councils an additional £500m to pay for children's and adult social care.

Lower-tier districts are expected to get extra sums totalling £30-£40m.

Mr Kawczynski had said he was planning to write to his fellow Conservative MPs and was aiming to get "a deputation of 20 of us to go together, to warn them that this will be voted down unless they can find additional money for our councils."

But after receiving the news of the extra £500m he said he would "digest" the information and wait to hear what Shropshire Council thought of it before deciding to continue.

A spokesperson for the Department for Levelling Up, Housing and Communities previously said: "We recognise councils are facing challenges and that is why we have announced a £64bn funding package - a real terms increase at an average of 6.5% - to ensure they can continue making a difference, alongside our combined efforts to level up.

"We recently consulted on the final settlement for next year and are now considering the responses carefully. Councils are ultimately responsible for their own finances, but we remain ready to talk to any concerned about its financial position."