Funding for Local Councils

Opened the debate

The MP for North Shropshire highlighted the severe financial strain on local councils due to funding cuts from central government, particularly affecting rural areas. She cited a £50 million cut in the recent fiscal year and a projected £60 million cut next year by Shropshire Council. The MP emphasised that social care consumes 85% of the council's budget, leaving only 15p per pound for other services. She provided examples of families struggling with social care funding and highlighted issues such as recycling centre closures, transport difficulties for special educational needs pupils, and reduced public facilities like libraries and performance spaces due to financial constraints. The MP also discussed the impact on public transport, education, and economic regeneration in rural areas.

Government Response

The Minister acknowledged the challenges faced by local councils, particularly regarding adult social care funding and home-to-school transport. He noted that Shropshire Council will receive an increase in core spending power of up to £25.1 million for 2024-25, representing an 8% rise from the previous year, making a total of £340.2 million available. The Minister also highlighted additional funding through the Rural Services Delivery Grant (RSDG) amounting to £9 million. He emphasised the need for local authorities to modernise and seek savings through shared services. The Minister expressed hope that after the general election, his party will represent North Shropshire and pledged to continue working towards a robust settlement rubric for cost-effective public service delivery.