Taxpayers in Telford, Shropshire, continue to bear an annual cost of over £1 million, contributing to a debt arrangement established more than 25 years ago during the creation of Telford and Wrekin Council.
The council, formed in 1998, gained full unitary authority powers, with Shropshire Council taking similar control for the rest of the county.
As part of this separation, Telford assumed responsibility for a portion of the debts held by the former Shropshire County Council.
These payments are expected to continue until the financial year 2060-61. In 2023-24, the total contribution reached £1.143 million, reflecting an average interest rate of 4.1%.
Budget projections indicate that these debt repayments will constitute approximately 9.9% of Telford and Wrekin Council’s £180 million revenue budget by 2025-26.
The council generates income from initiatives like its arms-length housing company Nuplace and the Growth Fund to support its financial obligations.
Despite these efforts, residents are set to shoulder this historic financial burden for another 35 years.
This report highlights the financial challenges local councils face and the long-term impact of historical agreements on taxpayers.
