Shropshire Council votes to keep hold of £511,000 in parish and town council grants

Opposition councillors called todays decision immoral and said the unitary authority was purloining money.

But council chairman Malcolm Pate said it was only fair the parish councils should share the pain of cuts.

The decision was taken at today's full council meeting at Shirehall.

It followed a "game changing" letter sent to council leader Keith Barrow urging him to reconsider the plans to stop passing on Government grants to town and parish councils.

Local Government minister Kris Hopkins called for talks between officials at Shirehall and representatives of town and parish councils and said an "appropriate amount" of money should be passed on.

He has written to all billing authorities calling on them to pass council tax support grants to town and parish councils.

Mr Hopkins had been asked to intervene on behalf of councils in Shropshire by Bishop's Castle councillor Charlotte Barnes, Wem Town Council and all four of Ludlow's Shropshire councillors.

The council's decision over the grants has caused uproar in town halls across the county.

Councillor Barrow said he had not yet seen Mr Hopkins' letter so it would be inappropriate to comment on it.

In the letter, Mr Hopkins urges council leaders to "properly identify the amount of local council tax support funding attributable to town and parish councils. . . and ensure that an appropriate amount is passed on in open and collaborative discussion with the parishes".

He says: "The Government has provided £3.3 billion annually to local authorities for local council tax support schemes. This includes an amount attributable to town and parish councils.

"The exact amount attributable depends on council tax levels, scheme design and geographical spread of claimants, so only billing authorities can calculate the appropriate amount to pass on to town and parish councils.

"However, it would only be appropriate not to pass on any local council tax support grant if there were no claimants in that parish."

Councillor Barnes said the letter was a "game changer".

She said: "I am pleased that Kris Hopkins has written to council leaders telling them to do the honourable thing and to pass on the council tax support grant.

"Shropshire Council will shame itself and our county if it refuses to give town and parish councils the money that is rightfully theirs."

Councillor Barrow has defended the move, saying the £511,000 saved by withholding grant payments would be a vital step towards addressing the "budgetary pressures" at Shirehall as the authority needs to save £80 million over a three-year period – but he admitted the controversial decision should have been handled differently.