Telford and Wrekin still paying Shropshire debt

A report has revealed how much Telford & Wrekin Council paid to Shropshire Council last year for the debts of the old county council which was abolished in 1998.

When the two new unitary councils were created, Telford & Wrekin Council had to start paying its share of the old Shropshire County Council’s debt pile. Payments are scheduled to continue to 2060/61.

A report to Telford & Wrekin Council next week says the contribution made in 2024/25 was £1.082 million which included interest at an average of 4.6 per cent.

“The council makes an annual contribution towards Shropshire Council costs on pre disaggregation debt (pre-unitary inception),” says the report.

“The contribution in 2024/25 was £1.082m which included interest at an average of 4.6 per cent.

“The rate of interest paid on this is managed by Shropshire Council and is considerably higher than the rate payable by Telford & Wrekin Council on its borrowing.”