Shropshire Council gets no-confidence vote from town council in £30k council row

Wem Town Council claims it has been forced to raise the annual precept it charges residents by 19.7 per cent after Shirehall withheld the town's share of the Government's Council Tax Support Grant.

It has branded the decision, which has affected all town and parish councils across the county, as "morally wrong". Members have written to Shropshire Council leader Keith Barrow, North Shropshire MP Owen Paterson and Local Government Minister Kris Hopkins to raise their concerns.

Wem is the latest of a number of town and parish councils to speak out over the withholding of the cash. Shrewsbury Town Council and Oswestry Town Council have also criticised Shirehall over its stance.

For the current financial year, ending March 31, Wem was handed £28,576 through the grant. However, if a similar grant sum is not received for the upcoming financial year, that year's precept will rise from £238,662 to £263,493 to meet the shortfall – meaning band D households will pay £145.88, a rise of 24p.

Members of Market Drayton Town Council have also agreed to raise their precept by nine per cent from £102.68 to £114.47 due to the loss of the national grant.

Shropshire Council was not available to comment.

Jane Drummond, clerk of Wem Town Council, said: "A considerable hike in Wem's council tax precept for 2015/16 might be hard to stomach, but it is easy to explain – it is down to a Shropshire Council action, which we fear will have a massive impact on our budget.

"With little warning the county authority has decided not to distribute to local councils, like Wem town council, central government money known as the Council Tax Support Grant (CTSG). In the current financial year the CTSG put a welcome £28,576 into Wem Town Council's purse, which has been used as the Government intended – to lessen the impact on householders of the local council tax requirement.

"Wem councillors have fully appreciated Shropshire Council's own budget constraints, but consider what it is doing – withholding government cash meant for town and parish councils – to be morally and ethically unacceptable.

"It is hoped under so much pressure Shropshire Council at its budget meeting on February 26 will have a change of heart and distribute CTSG as it has done in the past two years."

Councillor Roger Hughes, who represents Market Drayton West on Shropshire Council, said councillors in Market Drayton felt forced to increase the precept for residents in the town.