Gloucester residents will see a rise in council tax payments starting this April, as councillors have approved a 2.99% increase despite ongoing financial challenges. The decision comes after the Government pledged a £15.5 million bailout to rescue the financially troubled Gloucester City Council from near bankruptcy.
This crucial funding has prevented the need for a section 114 notice, which would have effectively forced the council into insolvency. With this support, councillors passed a nearly £27.7 million budget for the next financial year, marking a key step in the council’s recovery plan.
As a result, the annual charge for a band D property for city council services will rise from £237.04 to £244.13. Residents will also face additional charges of £1,763.46 for Gloucestershire County Council services and £340.58 for police funding. Those living in Quedgeley will pay an extra £45.82 for Town Council provisions.
READ MORE: Cheltenham Pubs Extend Hours to Serve Breakfast and Pints During Festival Week
READ MORE: How to Watch Bath Rugby vs Gloucester Rugby Live: Full Team News and Match Details
Council leader Jeremy Hilton acknowledged the significant financial pressure faced by Gloucester. “The authority has been squeezed time and again over the past years,” he said, describing the council’s financial crisis as both “complex and severe.” Hilton praised council officers for their diligence in drafting the recovery plan and securing government support, noting that the Government’s confidence was a vital reassurance.
Looking ahead, the council plans to set aside £1 million for upcoming local government reorganisation. They also intend to generate £2 million over the next two years through cost savings, alongside increasing fees and charges. Hilton added that the council expects to earn £500,000 from the Forum next year and will consider selling some of its 277 properties to help repay the government loan.
Attempts by Conservative and Labour councillors to amend the budget were rejected. However, the Community Independents’ proposal to allocate £3,500 for Gloucester Day celebrations was unanimously approved.
Conservative group leader Stephanie Chambers urged the council to waive fees for replacement green boxes, blue sacks, and food caddies, funded by cuts elsewhere in the budget. Finance officers advised against this change.
Conservative Sajid Patel echoed concerns raised by local MP Alex McIntyre about governance, describing a “lack of democracy” and expressing frustration that the senior leadership team holds too much control over the council’s operations.
Labour group leader Terry Pullen called for an apology from the council leader over the financial crisis and pointed to a recent Ernst & Young audit report highlighting weaknesses in financial controls, reporting, and planning. Pullen criticized the rise in fees, cuts to frontline services, and stressed that despite government Emergency Financial Support funding, the council’s problems are far from resolved.
He also proposed a modest £25,000 community grant fund, to be funded by reducing the communications, festivals, and marketing budget. This amendment was defeated.
The budget passed with 19 councillors in favour and 14 against. The Liberal Democrats, Community Independents, and Lorraine Campbell (Conservative, Tuffley) supported the budget, while the rest of the Conservative group and Labour voted against.