Shrewsbury’s voluntary sector may lose out on thousands of pounds of grant funding under Shropshire Council’s budget proposals for the next financial year.
Fears have been raised that the cuts, outlined in the council’s budget scrutiny 2010/11, could leave voluntary groups struggling to cope during the recession.
Eight groups from across the county have been earmarked to have their grants slashed – to help the council promote economic development and make a saving of £58,000.
Among the hardest hit is Partners for Social Enterprise and Enterprise HQ in Roushill, which could see its funding stopped altogether, saving a combined total of £12,500.
Shrewsbury Tourism Association and Shropshire Tourism could lose out on a combined total of £19,300.
The grants are administered under a service level agreement (SLA), through which the council buys services off the voluntary sector which is reflected in the grant given.
Enterprise HQ and Partners for Social Enterprise both provide support and advice for businesses with a social focus, while Shropshire Tourism provides information for accommodation, attractions, events and activities throughout the county. Shrewsbury Tourism Association gives details on events and places to stay in the county town.
Councillor Nigel Hartin, leader of the Liberal Democrats on Shropshire Council, said: “The reduction in grants to organisations like Shropshire Tourism and Young Enterprise will significantly cut back their activities.
“Meanwhile the complete withdrawal of funding to Enterprise HQ is mystifying given that it has twice won Enterprising Britain awards for Shropshire, supporting hundreds of local businesses.
“I believe letters have already gone out to these groups advising them of the grant reductions and emails have been coming in expressing disbelief from some of these groups.”
But Simon McClay, chief executive of Shropshire Tourism, said cuts were to be expected. He said: “The fact tourism has seen a reduction does not surprise me and I expect others are going through similar reductions because of the need to get the budget right for the whole county.
“The letters that have been sent out by the council have been very helpful because they have given us an early and prompt indication as to what SLA we will have in the next financial year.
“We live in the real world and accept the pressures the council is under.”
Mark Pembleton, head of economic development with Shropshire Council, said: “Shropshire Council’s economic development service has reviewed all of its service level agreements with its partner organisations for the next financial year 2010/11.
“The council has inherited agreements entered into by the five former district councils and the former county council.
“These have now been reviewed and important efficiency savings have been made to ensure more effective service delivery.
“Although some organisations have had reductions in funding, others – such as South Shropshire Tourism Association – will receive additional funding, and some – such as Enterprise South West – will receive the same grant as this year.”
By Charlotte Hester