'One month from bankruptcy' warning in heated Shropshire Council debate
Shropshire Council's administration has come under fire over its finances, with an opposition leader warning the authority is "one month from bankruptcy".
During a heated debate at the full council meeting on Thursday opposition members launched heavy criticism of the authority's Conservative administration over the perilous state of its finances.
It comes after a Local Government Association review of the council's efforts to resolve its financial issues, which was published last month, concluded the authority has "little room to manoeuvre" over the threat of financial insolvency.
The council has to save £51.390m to deliver a balanced budget for 2023/24.
The LGA warned that even if the authority makes 95 per cent of its targeted savings it will still use up the entirety of its reserves, adding that the situation "seriously jeopardises its financial solvency".
A number of councillors criticised the handling of the authority's finances, during a debate where the Liberal Democrat leader, Councillor Roger Evans, sought to amend the acceptance of a report outlining the current financial position of the council – criticising its failure to deliver its own budget.
Presenting the report Councillor Gwilym Butler, the council's Conservative portfolio holder for finance and corporate resources, said the authority had begun "transforming the council to a modern efficient, sustainable council, fit for the future generations of Shropshire".
During a debate that followed, Liberal Democrat councillor David Vasmer said there was major concern over the council's finances becoming so poor that the authority could be taken over by government commissioners – and out of the hand of locally-elected councillors.
He said: "We are in a position where we are perilously unsafe. For example, it makes quite clear in the report we are now in an unsafe position as far as reserves are concerned and likely to be in a position where the Government sends in commissioners.
