Gloucester City Council has written off nearly £1 million in debt over the past two years, shedding light on significant financial challenges facing the authority.
The council, currently supported by a £15.5 million bailout loan from the Government, disclosed that it has been unable to recover a total of £881,017 in outstanding debts. This figure includes £576,629 linked to commercial property, alongside £304,388 from council tax, business rates, and other arrears.
The revelation came after Conservative Councillor Andrew Gravells (C, Abbeydale) queried the cabinet about the scale of bad debt written off during this period. Gravells expressed deep concern, stating, “These are staggering amounts. How on earth were they allowed to build up like this? I will be demanding much more information. It’s simply unacceptable, especially given our already precarious financial situation where every penny counts.”
READ MORE: England Captain and Gloucester-Hartpury Star Zoe Stratford Announces Pregnancy
READ MORE: Gloucester Implements New Policy to Manage Unruly Roughsleepers and Unauthorized Camping
In response, Resources Cabinet Member Declan Wilson (LD, Hucclecote) explained that debts are only written off after all efforts to recover the money have been exhausted. “All these amounts were fully accounted for in the bad debts provisions, which are reviewed annually based on the level and age of outstanding debts at each year-end,” he noted. Wilson also clarified that, for council tax and business rates, only the City Council’s share of the totals is included in these figures.
Liberal Democrat leadership has previously acknowledged inheriting a difficult financial position from the previous Conservative administration and has committed to rectifying the situation. As part of its ongoing financial recovery plan, the council is considering selling assets to repay the extraordinary financial support it has received from the Government.