Lead Member – Councillor Roger Evans, Portfolio Holder for Finance

Lead Officer – Duncan Whitfield, Interim Director Finance Improvement (Section 151 Officer)

REPORT TO FOLLOW

RESOLVED:

1. That Cabinet note that the final settlement has been received in line with the provisional statement and in particular the special permission for Shropshire to raise an additional 4% supplement above the Council Tax limit of 4.99%.

2. That the S151 Officer be requested to make amendments to the budget report to be presented at Council on the 26^th February to include a recommended supplement of 4% on Council Tax with a compensating reduction in the Exceptional Financial Support.

3. That the S151 Officer be requested to ensure that appropriate officer support is available within the Council Tax team to provide advice and guidance to those who may be most impacted by this increase. This is to ensure they are receiving all financial support available to them through benefits and the Government Crisis Resilience scheme.

The Portfolio Holder for Finance presented the Financial Strategy, including updates following the final Local Government Finance Settlement.

It was noted that the settlement confirmed a reduction in government funding compared to the current year, alongside the Government’s agreement to allow Shropshire Council to apply an additional council tax increase above the standard referendum limit. Members acknowledged the significant financial pressures facing the Council, particularly in relation to adult social care, SEND, and overall service sustainability.

Cabinet noted that applying the additional council tax flexibility would reduce the level of borrowing required to set a balanced budget and help mitigate future interest costs. The importance of providing support and advice to residents most affected by the increase was emphasised.

RESOLVED:

1. That Cabinet note that the final settlement has been received in line with the provisional statement and in particular the special permission for Shropshire to raise an additional 4% supplement above the Council Tax limit of 4.99%.

2. That the S151 Officer be requested to make amendments to the budget report to be presented at Council on the 26^th February to include a recommended supplement of 4% on Council Tax with a compensating reduction in the Exceptional Financial Support.

3. That the S151 Officer be requested to ensure that appropriate officer support is available within the Council Tax team to provide advice and guidance to those who may be most impacted by this increase. This is to ensure they are receiving all financial support available to them through benefits and the Government Crisis Resilience scheme.