Gloucester Council Proposes Nearly 3% Tax Increase Amid £15.5m Bailout Bid

Gloucester households face a proposed 2.99% rise in council tax alongside increased parking fees this year as the city council attempts to secure a £15.5 million emergency bailout loan from the Government.

For band D properties, the portion of council tax attributed to Gloucester City Council services is expected to increase to just over £244. This figure is only part of the overall council tax bill, which also covers Gloucestershire County Council, local police services, and, for residents in Quedgeley, contributions to their town council.

Deputy Leader Declan Wilson (LD, Hucclecote) highlighted at a recent cabinet meeting that achieving a balanced budget hinges on approval of the emergency financial support (EFS). Without it, the council risks issuing a Section 114 notice, indicating it cannot lawfully balance its finances.

Wilson emphasized the precarious nature of the budget, noting that reserves are at their minimum acceptable levels. The £15.5 million loan would help stabilize the council’s finances temporarily, but it is not a permanent fix. Additional savings beyond those already planned will be necessary.

“The EFS is a temporary reset, not a solution,” Wilson explained. “The recovery plan’s success, reliant on further savings, income generation, and asset sales, is essential for the council to achieve sustainable finances in the medium term.”

Key financial pressures include borrowing costs, the anticipated local government reorganization, and rising inflation. The council is planning a capital program totaling around £23 million over the next five years.

Wilson concluded that while this budget will stabilize the council in the short term, it remains fragile. Its success depends on government loan approval, strict recovery plan implementation, and difficult decisions ahead.

The cabinet has endorsed the budget and tax proposals, which will be discussed by the full council later this month.