A fervent dispute has emerged between Cheltenham’s borough council leader and a former mayor over the council’s financial health. Rowena Hay, leader of the Liberal Democrat group, has firmly dismissed concerns raised by Wendy Flynn, a former Lib Dem turned Green Party activist, regarding the council’s finances and the risk of bankruptcy.
Flynn’s open letter to the council expressed deep alarm over several financial issues: a projected overspend of approximately £500,000, a budget shortfall of £1.17 million for the upcoming year, and an unprecedented third consecutive disclaimed audit opinion due to missing or unreliable financial information in the council’s accounts for 2022/23 through 2024/25.
The former mayor emphasized the lack of a documented risk assessment related to a potential section 114 notice—a warning normally issued when a council’s budget is unbalanced, restricting it from new spending commitments. She warned that despite these troubles, council leaders are assuring residents that services will not face cuts, a claim she finds “not credible.”
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In response, Cllr Hay accused Flynn’s letter of being politically motivated and “factually inaccurate.” She reassured the public that Cheltenham Borough Council is not facing a section 114 notice or bankruptcy. According to Hay, while financial pressures exist—a reality shared by many councils across the nation—the council’s reserves and overall budget position do not indicate imminent financial collapse.
Hay pointed to the nationwide shortage of external auditors and recent government interventions designed to address delayed accounts. She clarified that auditors declared disclaimers due to time constraints rather than substantive financial mismanagement. The council is actively working with auditors to complete the 2025/26 accounts promptly.
Regarding the council’s savings target of £1 million, Hay reminded that the council set a similar, slightly higher savings target under the previous Green Party member’s tenure, during which Flynn abstained from voting and supported Conservative budget proposals. Hay challenged the former mayor to focus efforts on collaborating to secure better financial support from the government, highlighting years of funding cuts and increasing council tax burdens.
The budget for the forthcoming year is scheduled for debate by borough councillors on February 27.