Telford residents will continue to contribute to a debt incurred during the separation from Shropshire Council in 1998, with payments projected to last until 2060-61. The annual payment of over £1 million represents a significant portion of the council's budget, earmarked for historical debt repayment.
Taxpayers in Telford are still footing the bill for their separation from Shropshire Council , over 25 years after the split. Telford and Wrekin Council was established in 1998, assuming full unitary authority powers, while Shropshire Council took charge of the rest of the county. As part of this process, Telford inherited some of the debts held by the former Shropshire County Council.
A Telford Council spokesperson confirmed that the payments to Shropshire Council are connected to these historical debts and are projected to continue until 2060-61.Documents from recent council meetings revealed that in 2023-24, Telford paid £1.143 million to Shropshire Council, with an average interest rate of 4.1%. Budget papers indicate that approximately 9.9% of the council's annual revenue budget, which is around £180 million, is allocated towards debt repayments. This figure can fluctuate depending on interest rate changes.In 2025-26, the council anticipates debt repayments will consume roughly 9.9% of its £180 million revenue budget. The council's budget documents highlight that the authority generates income through various schemes, including its arms-length housing company, Nuplace, and the Growth Fund.
Telford Shropshire Council Debt Repayment Local Government Finance Council Tax
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