Shropshire Council is facing bankruptcy after spending £39 million on a £215 million relief road that was ultimately cancelled. The council has warned it may need to borrow up to £100 million to avoid running out of money by April 2026.
The North West Relief Road, a four-mile bypass around Shrewsbury, was proposed by the previous Conservative administration to reduce congestion and pollution. However, the new Liberal Democrat administration scrapped the project this summer, citing unaffordability.
Council leader Heather Kidd said the council may seek additional government funding, warning that repaying a £54.4 million grant from the Department for Transport would 'tip the council over the edge'. The council was among 29 local authorities granted Exceptional Financial Support last winter.
An independently chaired improvement board is being established to oversee spending, with campaigners calling for an inquiry into the failed project. The scheme was opposed by environmental groups and saw a petition to save a 550-year-old oak tree attract over 100,000 signatures.
