Gloucester City Council is confronting a severe financial crisis, with fears it could effectively “go bankrupt” unless party politics are set aside. The council is poised to submit a loan application to the Government for emergency funding ranging from £12.5 million to £17.5 million.
At a special meeting held at North Warehouse on December 18, councillors were updated on the council’s precarious financial state. The loan application, prepared following council leaders’ agreement last week, must be paired with a solid financial recovery plan to prevent the issuance of a section 114 notice—a formal declaration indicating that the council cannot balance its budget or make new spending commitments.
Deputy Leader Declan Wilson (Liberal Democrat, Hucclecote), responsible for resources, shared that discussions with the Government over the emergency funding request have been positive. However, he emphasized the critical need for cross-party cooperation to ensure the recovery plan’s success. “We have to work together on this. This is the only way we are going to do this,” Wilson stated.
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The council has collaborated closely with the Ministry of Housing, Communities and Local Government over the past six weeks, with support from the Chartered Institute of Public Finance and Accountancy (CIPFA). However, CIPFA has expressed concerns about the council’s “no overall control” status, which could jeopardize the passing of necessary financial measures.
The financial turmoil stems partly from the aftermath of a cyber attack, which delayed the council’s financial reporting and auditing processes. Consequently, decisions were often made based on estimated figures, leading to significant miscalculations.
The recovery plan aims to restore reliable financial reporting, implement stringent budget monitoring, and boost income through asset sales and improved commercial ventures. It also focuses on strengthening the finance and asset management teams and enhancing governance.
Labour leader Terry Pullen (Moreland) voiced support for the recovery plan but criticized the lack of apology to Gloucester’s citizens for the fiscal mismanagement and the resulting cuts to essential services. He attributed much of the financial failure to the previous Conservative administration, while also highlighting a £2.5 million overspend under the current Liberal Democrat leadership.
Conservative group leader Stephanie Chambers (Quedgeley Fieldcourt) countered by highlighting the growing overspend under the Liberal Democrats, which now totals nearly £7 million. She also criticized the council’s optimism regarding revenue from The Forum, which failed to meet budget expectations.
Community Independents leader Alastair Chambers (Matson, Robinswood and White City) warned the council was “on the brink of bankruptcy,” sustained only by the anticipated government loan. He expressed concern over increased charges, service cuts, and the lack of clarity on missing funds.
The council formally noted the report, with the Government’s decision on the emergency funding expected by February 2026.