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SHROPSHIRE LIFTS CAP BUT FACES COLLISION WITH WHITEHALL

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The Birmingham Post (p4) reports that Shropshire CC has set itself on a collision course with the government by set...
The Birmingham Post (p4) reports that Shropshire CC has set itself on a collision course with the government by setting a budget that breaks ministers' spending limits. Council taxpayers face a 17% rise in their bills from April at the same time as the council makes cuts totalling£10 million in services.

Leaders of the council blame the crisis on a£10m shortfall between the amount they calculate they need to spend in 1998/99 and the£175.7m Whitehall has set as a 'capping' limit. Local government minister Hilary Armstrong told a delegation on Tuesday that Shropshire could not be treated as a special case and the cap stays in place.

If Shropshire is ordered by the government to scrap its first council tax bills and send out a freash batch based on government-ordered spending limits, it will cost the council around£300,000.
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