Shropshire Council is ‘unbelievably close’ to declaring itself effectively bankrupt, according to the council leader.
The local authority is facing a funding gap of £62.5m this financial year and needs to find the equivalent of £191 per resident in savings, which is more than any other council in England.
Council leader Lezley Picton told the BBC the authority is ‘unbelievably close’ to issuing a Section 114, declaring itself effectively bankrupt.
She blamed the council’s financial issues on the rise in demand for its services. For example, the percentage of its net budget that is spent on social care has increased from 58% to 74% over the last six years.
All non-statutory services are being reviewed to find savings, she added, and 540 full-time posts need to be axed.
Check out: Preventing future Section 114 notices
