'We need more council tax to pay for past mistakes'

A council leader has said another council tax rise above the usual limit is likely to be set next year to "pay for the mistakes of the past".

Heather Kidd's Liberal Democrat administration on Shropshire Council declared a financial emergency last September, following years of the authority battling to deliver balanced budgets.

An independent report has laid bare the council's "extremely poor financial health," in part due to "a lack of adequate financial management" under Conservative leadership.

The Chartered Institute of Public Finance and Accountancy (CIPFA) undertook a review of the council in May following a request by the government.

It blamed the financial pressures facing the council on a significant increase in expenditure on social care, as well as the impact of consecutive council tax freezes between 2010 and 2016.

It is thought that decision not to increase the tax, made by a previous Conservative administration, reduced income by about £20m in the last financial year.

The report also criticised more recent leadership at the authority for setting savings targets that were too ambitious, and for cutting 217 staff posts without a clear plan for how the council would operate in future.

In April, Shropshire Council increased council tax by 8.99% - 4% above the usual limit set by central government.

Another rise above that threshold is expected next year as the authority attempts to borrow less money from the government to plug a funding gap, thought to be about £121m in 2026-27.

"We may commit to a similar rise next year… I will be very resistant to do any more than that, but it is needed to pay for the mistakes of the past," said Kidd.

"It may be the only way we're going to be able to make ends meet, as well as make all the savings that we've got to make.

"It's about balancing the books in lots of different ways," she added.

The CIPFA report highlighted a major change in the leadership of the council in September 2025, following the resignation of chief executive, Andy Begley.

It said new leaders and senior officers had recognised financial failings and had started to implement a change in culture and working practices.

It has, however, made 22 recommendations that the council should implement to improve financial management, as well as governance, culture and leadership.

They include selling the authority's former headquarters, Shirehall, as soon as possible, and identifying assets to sell by December.

Leaders have also been told to develop a financial recovery plan by the end of the year, which should outline more radical options to reduce costs, such as working with other local authorities in delivering some services.

"This report is an utterly damning indictment of years of Tory financial mismanagement," said Dawn Husemann, who leads the Reform UK group on the council.

"It will take decades and millions of pounds to pay back the borrowing we are forced to make.

"Shame on you," she added.

The Conservative group on Shropshire Council has been approached by the BBC for comment.

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