Gloucester City Council remains shrouded in uncertainty as no individual has yet claimed responsibility for the financial crisis that has compelled councillors to reset the current budget following a £2.8 million overspend. Faced with this substantial deficit, council leaders have requested an emergency bailout loan of approximately £15 million from the Government to stabilize their finances.
This urgent funding is necessary after the revelation of the overspend, which emerged once three years of incomplete financial accounts were finalized last year. Without this support, the council faces the possibility of issuing a section 114 notice, effectively halting all new spending commitments.
On January 29, councillors agreed to revise the budget for the 2025/26 financial year, officially acknowledging a £2.8 million in-year deficit. Yet, despite the gravity of the situation, questions about who bears ultimate responsibility remain unanswered.
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Conservative sources contend that the previous administration’s leadership was unaware of the looming financial turmoil. Meanwhile, Labour group leader Terry Pullen (Moreland) emphasized the absence of any apology for the fiscal mismanagement, cuts to services, increased charges, asset sales, or job losses. He has called for a full forensic investigation to uncover the facts.
“No one has apologized for cuts, no one for increased charges, no one for job losses. I asked for an apology. There hasn’t been one. Why not?” Pullen said during a council meeting.
Council leader Jeremy Hilton (Lib Dem, Kingsholm and Wotton) defended his party’s actions, explaining that the Liberal Democrats uncovered the true state of the council’s finances. He highlighted that the Conservatives left with three unfinished years of accounts—a historically unprecedented situation.
In response, Pullen cited a recent report describing the crisis not as mismanagement, but as a series of “systemic shocks,” dismissing these findings as a “smokescreen.” He urged the council leader to admit that mismanagement was at the heart of the crisis.
Hilton countered that external factors such as a cyber attack, the COVID-19 pandemic, and rising interest rates—especially following the launch of the Forum project—have all contributed. However, he questioned why no action was taken to finalize accounts during those three crucial years, calling upon former leader Stephanie Chambers to explain.
Chambers (Quedgeley Fieldcourt) responded by assuring that the Conservative group has nothing to hide and welcomes a forensic investigation, despite opposition from the Liberal Democrats, who argue such an inquiry would cost taxpayers £200,000.
Terry Pullen noted disappointment at evasive answers regarding the question of ultimate accountability. “Where does the council leader believe responsibility lies?” he asked.
Hilton reiterated that the failure to file accounts for three years occurred under Conservative control. Labour councillor Tree Chambers-Dubus (Moreland) then expressed frustration shared by residents, who feel ignored and demand transparency.
“They want to see someone step forward and say, ‘I was responsible for this oversight,’” she said. “Whether someone lost sight of it or chose to ignore it, people aren’t getting answers.”
Councillor Declan Wilson (Lib Dem, Hucclecote) acknowledged these concerns but cautioned against relying solely on a costly forensic investigation. Instead, he advocated for a thorough examination of the council’s governance, including what the cabinet knew, decisions made, or ignored during the crisis.
Ultimately, the council approved the revised 2025/26 budget with the £2.8 million overspend incorporated, as the authority continues to grapple with financial instability and pressing demands for accountability.