Concerns over the state of Shropshire Council’s finances have been allayed as the authority’s leader blamed the government’s “Brexit distraction”.

Councillor Peter Nutting said Theresa May’s government was preoccupied with negotiations over the upcoming departure from the EU.

Local authorities will have to wait until September or October to find out their settlement for the 2020/21 financial year.

Cllr Roger Evans, leader of the Lib Dem group on Shropshire Council, said he was becoming increasingly concerned about the authority’s finances.

He said the council’s financial situation was usually rated as ‘green’ in reports to members, but this had switched to amber for the first time.

He said: “I am growing increasingly concerned about the financial situation as I have never seen it rated as amber before now.

“This is a worry, especially with the uncertainty over the future budgets.”

But Cllr Nutting said: “I am not concerned. As far as I am aware everything is looking pretty good and well-balanced.

“We are nearing the fourth year of a four-year settlement with the government.

“The government is preoccupied with Brexit and not giving a great deal of attention to local government finance currently.

“There are a lot of questions marks over future funding but we won’t find out until September or October what our settlement for the next year will be.

“This is why we are being prudent and hopeful of a good settlement.”

And James Walton, the council’s director of finance, reassured Cllr Evans.

He said: “I think its showing as amber is a mistake and as far as I am aware it should be green.

“I am forecasting a £72,000 overspend on a multi-million pound budget and for me that is not an amber light, that’s a green light.

“We are balancing the books well and I have no reason for concern.

“We are taking a very measured approach to finances and playing it very safe to ensure future success.”