Gloucester City Council is facing a severe financial crisis after revealing millions of pounds in overspending over recent years. Despite this, the council has described 2025 as a “year to celebrate,” a claim that has sparked outrage among local politicians and residents.
This year, the council applied for a government bailout loan of up to £17.5 million after audits uncovered inaccuracies in its accounts for the past three financial years. While local authorities cannot technically declare bankruptcy, they can issue a section 114 notice, which would freeze new spending commitments. Gloucester City Council risks this fate unless it secures a bailout of between £12.5 million and £16.5 million.
In response, the council has unveiled a recovery plan involving job cuts, increased fees, reduced opening hours at the city museum, and scaled-back financial support for festivals and events. They also plan to terminate their lease at Blackfriars Priory and consider selling council properties.
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However, the council’s recent social media post celebrating 2025 has been met with condemnation. It highlighted 18 new openings in the city centre, the opening of the multi-storey car park at The Forum, and the University of Gloucestershire’s new City Campus.
Labour group leader Terry Pullen expressed disbelief at the council’s tone, saying, “It just goes to show how out of touch they are. Due to its own financial incompetence the council is effectively bankrupt and having to ask the government for a £17 million bailout. They should be apologising to the public for this, not celebrating. Because of the financial situation, there will no doubt be cuts to services in the year ahead.”
Conservative group leader Stephanie Chambers described the celebratory message as “nothing short of insulting” to local residents and businesses. With rising charges and reduced services looming, she criticized the council for praising itself just weeks after requesting government funding. Chambers has called on Council Leader Jeremy Hilton to reconsider the council’s communication approach.
Community Independents leader Alastair Chambers was even more scathing, describing 2025 as one of the darkest years in the council’s history, citing serious failings such as mismanagement at the council-run crematorium and delays in the Forum regeneration project. “Residents are paying more, getting less, and being treated as an afterthought,” he said, attributing the crisis to systemic failure and weak leadership.
Council Leader Jeremy Hilton acknowledged the challenging financial situation but emphasized the significant regeneration progress made over the past year. “Together, we have begun delivering regeneration projects that will shape the future of our city for generations,” he said. Notable developments include The Forum bringing high-tech jobs and investment, plans for the Greyfriars Quarter, and the University of Gloucestershire’s revitalized City Campus.
Hilton appealed for unity, calling on Gloucester residents to focus on rebuilding and future opportunities despite current hardships. He stressed that the council is committed to addressing financial issues head-on and outlined plans for ongoing regeneration in 2026.
The council’s financial overspend has grown from £1.5 million in 2023/24 to £4.3 million in 2024/25, with a further £2.5 million overspent so far this year. In light of this, staff face redundancy risks, and some employees have accepted voluntary resignation offers as part of cost-cutting measures.
Additionally, the City Museum’s opening will be reduced to four days a week, and fees for green waste, bulky waste, and fly-tipping are set to increase. The council’s austerity measures reflect the difficult balancing act between managing finances and maintaining services.