Cheltenham Borough Council is confronting a significant financial challenge, with a reported £564,000 overspend putting the authority’s budget under severe strain. While council leaders remain confident in their ability to manage these difficulties, former mayor Wendy Flynn has voiced strong concerns about the town’s fiscal trajectory.
Flynn, a Green Party activist and longtime community advocate, warns that the council’s finances are “sliding into crisis.” She highlights the overspend, unfulfilled savings targets, and dwindling reserves as signs of lost control over public funds.
“Residents are being asked to accept cuts and increased charges while the council fails to deliver on key promises,” Flynn said. She described the situation as not just disappointing, but a betrayal of public trust that could jeopardise essential local services and opportunities.
Several issues stand out in the latest budget report. The council’s waste policy, for example, has resulted in a £128,000 overspend due to receptacle purchases, with concerns that the policy may disincentivise recycling. Additionally, the council acknowledges that continuing its climate emergency action plan is now a “challenge” amid funding shortfalls, suggesting a reduction in ambition and a shift toward appearance over action.
Vacant commercial properties such as Ellenborough House have contributed to financial strain, creating an £85,000 rental shortfall alongside £60,000 in business rates costs. Flynn warns that these mistakes in asset management are unsustainable and will leave Cheltenham vulnerable.
She also pointed to a worrying trend of broken savings promises and overspending under the current Liberal Democrat administration, including multi-million-pound losses at the MX Hub and the Ice Rink, and the sale of public assets like car parks, the Regent Arcade, and the airport—actions which reduce long-term revenue streams. Moreover, key development projects such as Golden Valley and North Place are delivering fewer social homes than planned, particularly those available for social rent.
“Cheltenham deserves better,” Flynn argued. “Public money, land, and trust must be managed transparently and responsibly, for the good of the entire community.”
In response, a council spokesperson acknowledged the tough financial environment faced by local authorities nationwide, highlighting inflation, rising costs, and reduced government funding. They confirmed the £564,000 overspend figure includes £542,000 in undelivered savings, which are being managed through financial controls and mitigation measures.
The council insists its reserves still provide a buffer against future risks and that they have a medium-term strategy to replenish them. It remains committed to delivering savings in upcoming periods and maintaining progress on the climate emergency through practical steps outlined in its action plan.
“We have a strong record of financial management and investment in Cheltenham’s future,” the spokesperson said. “We are confident in our ability to navigate these challenges responsibly and transparently, always prioritising the best interests of our residents.”