Residents of Gloucester face a nearly 3% increase in council tax alongside higher parking fees this year as the city council aims to secure a £15.5 million emergency loan from the Government.
For band D properties, the portion of council tax allocated to Gloucester City Council services is set to rise to just over £244. However, the overall council tax bill will be significantly higher since it also includes charges from Gloucestershire County Council, the police, and for Quedgeley residents, contributions to their town council.
Deputy Leader Declan Wilson (LD, Hucclecote) addressed the cabinet, stressing that the council can only balance its budget if the emergency financial support (EFS) is granted. “Without this loan, the council risks issuing a section 114 notice, which signals severe financial distress,” he warned.
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Wilson highlighted that the proposed budget leaves little margin for error and that the council’s reserves are dangerously low. The emergency funding would provide a much-needed financial reset, allowing the council to stabilize its position. However, he emphasized that this is a temporary measure.
“The EFS is a stopgap, not a permanent fix,” Wilson explained. “Achieving a sustainable financial future requires delivering a recovery plan focused on deeper savings, increased income, and asset sales.”
The council faces unprecedented pressures, including borrowing costs, local government reorganization expenses, and inflationary rises, which make balancing the books increasingly difficult. Similar budget tightening is anticipated in coming years.
Gloucester’s capital program plans investments totaling approximately £23 million over the next five years. Wilson noted, “This budget will stabilize the council in the short term, but it remains fragile and contingent on the approval of the emergency funding, disciplined execution of the recovery plan, and tough decisions ahead.”
The cabinet has endorsed the proposed budget and tax increase, which will be subject to debate at the full council meeting later this month.