A heated financial dispute has emerged at Gloucestershire County Council between the outgoing Conservative leadership and the incoming Liberal Democrat administration. Central to the conflict are claims of a significant “£17 million black hole” in the council’s finances, which the Lib Dems assert they inherited upon taking control of Shire Hall.
The new Liberal Democrat leadership, led by Council Leader Lisa Spivey (LD, South Cerney), recently unveiled revenue budget plans for the upcoming year totaling approximately £697.5 million. This budget notably includes an additional £15 million allocated specifically for highways improvements.
However, Conservative group leader Stephen Davies (Hardwicke and Severn) has challenged these figures, labeling the claims as misleading. Davies points out that council finance officers could not verify the alleged £17 million deficit. He communicated his concerns directly to Cllr Spivey on November 25 and has since lodged a formal complaint.
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Davies stated: “What do Lisa Spivey and Rachel Reeves have in common? Both misled the public prior to publishing their budgets. Unlike Rachel Reeves’ known case, Lisa Spivey’s £17 million ‘black hole’ assertion is baseless. Council officers have been unable to substantiate this figure. We set a cost-saving target of £10 million, equating to 1.5 percent reductions.”
Responding to these criticisms, Cllr Spivey clarified that the Liberal Democrat administration inherited a complex financial situation. “We started with a budget incorporating £10 million in savings targets and an additional £5.7 million in ‘benefit realisation targets,’ meaning there was over £15 million in planned reductions,” she explained.
Spivey further highlighted challenges brought on by the government’s Fairer Funding Review, designed to redistribute resources to areas with higher deprivation. Gloucestershire is projected to lose at least £2 million due to this review, contributing to the overall gap the council faces.
“This gave us a starting gap of at least £17 million, which we have addressed successfully, creating a £15 million surplus to invest in our roads—a key manifesto commitment,” she added.
Awaiting the final government funding settlement expected soon, Spivey expressed confidence in the budget’s capacity to meet priorities such as road maintenance, social care, community support, and local economic development.