Cheltenham Borough Council is facing mounting financial challenges, with a projected budget overspend of £564,000 sparking fears of a looming crisis. Although council leaders remain confident in managing these difficulties, former mayor Wendy Flynn has voiced deep concerns about the council’s financial direction.
Flynn, a Green Party activist and long-time community advocate, criticized the council for asking residents to accept service cuts and new charges while failing to meet its financial promises. “Cheltenham’s finances are sliding into crisis — a £564,000 overspend, broken savings targets, and reserves dipping below safe levels all signal an administration struggling to control public funds,” she said.
Highlighting the council’s latest quarterly budget monitoring report, Flynn described the findings as “deeply worrying.” She emphasized the gravity of managing public money, especially for someone who has served as Mayor and councillor.
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Among the issues she pointed to was the council’s waste policy, which has led to a £128,000 overspend on receptacle purchases, burdening residents and potentially discouraging recycling. Flynn also noted concerns around the council’s climate emergency action plan, which faces funding challenges that have reduced its ambitions to mere optics rather than concrete actions.
In addition, the council is grappling with financial shortfalls from vacant commercial properties, including an £85,000 rental loss and £60,000 in business rates at Ellenborough House — examples of what Flynn calls “basic asset management going wrong.”
Flynn warned that the town’s financial woes will leave it vulnerable to future shocks, with reserves now below recommended levels. She linked these issues to broader patterns under the Liberal Democrat administration, including multi-million pound overspends on projects like the MX Hub, losses at the Ice Rink, and the sale of public assets such as car parks and the airport — moves that undermine the council’s long-term income sources.
Local developments at Golden Valley and North Place have also fallen short in delivering promised social housing, notably homes for social rent, adding to the residents’ frustrations.
“Cheltenham deserves better,” Flynn asserted. “Public money, land, and trust must be managed transparently and responsibly for the benefit of all.”
In response, a Cheltenham Borough Council spokesperson acknowledged the financial pressures caused by high inflation, rising costs, and reduced government funding. The projected £564,000 overspend includes £542,000 in undelivered savings, which they say are being addressed through strong financial controls and mitigation strategies.
The council confirmed that reserves provide resilience against future risks and are part of a wider strategy to rebuild funds over time. While some savings have been delayed, officials stressed these will materialize in future periods.
Reaffirming their commitment to climate action, the council highlighted ongoing practical steps outlined in their Climate Emergency Action Plan, despite the difficult economic climate.
“Cheltenham Borough Council remains confident in its ability to manage current challenges responsibly and transparently, always prioritizing the wellbeing of the town and its residents,” the spokesperson concluded.