Gloucester City Council is grappling with significant financial challenges, prompting concerns that it may be forced to sell valuable assets — its so-called “family silver” — to avert bankruptcy.
Later this month, council leaders plan to request an emergency government loan between £12.5 million and £17.5 million. If approved, this financial support would address a £7.8 million overspend spanning the past and current financial years and help stabilize the council’s funding situation.
While councils cannot technically declare bankruptcy, they can issue a section 114 notice, which effectively halts any new spending commitments. Gloucester’s revised budget revealed a projected overspend of £4.3 million for 2024/25, with an additional £2.5 million overspend anticipated for 2025/26.
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Without the requested bailout, the council’s chief financial officer may have no choice but to issue such a notice, as the authority would struggle to balance its budget.
The council’s commercial property portfolio—including St Oswald’s Retail Park, Eastgate Shopping Centre (owned), and King’s Walk (leased)—is expected to generate £1.78 million less revenue than projected. Additional shortfalls are expected from cemeteries and crematorium services (around £500,000 less) and car parking income, which is £44,000 lower than anticipated.
Other budget pressures include a £295,000 overspend on IT costs, a £367,000 shortfall in housing subsidies, and £389,000 in management of assets overruns.
If the bailout is secured, the council intends to repay debts by selling less profitable assets, a move that has sparked unease among local political leaders.
Terry Pullen, Labour group leader, voiced serious concerns about the potential impact on community centres, which serve many voluntary organizations. He warned that urgent sales could lead to undervalued disposals. “I am concerned that community centres could be at risk and sold off,” Pullen said. “The council’s financial situation is so desperate that it may have to accept the cheapest offers rather than full market value.”
Alastair Chambers, leader of the Community Independents group, described the situation as a “panic” move that risks offloading the council’s “family silver” at bargain prices. He criticized previous council decisions—such as raising parking fees, cutting staff, and closing facilities like Blackfriars—while unused properties continued to drain resources.
In contrast, Jeremy Hilton, leader of the Liberal Democrats on the council, emphasized that properties will not be sold hastily or below market value. “We definitely won’t be selling properties on the cheap or rushing into quick deals,” Hilton said. “We’ll dispose of assets only if they achieve top market value or above. Some commercial properties remain highly successful and vital for funding services, which we intend to keep.”
As Gloucester City Council seeks financial rescue, the community watches closely, hoping the essential local facilities and assets that define the city’s character are protected.