Starting in April, residents of Gloucester will pay higher taxes while receiving fewer council services, following the city council’s approval of a 2.99% tax increase. This decision comes as the financially strained Gloucester City Council secures a £15.5 million government bailout, averting bankruptcy and enabling the approval of a £27.7 million budget for the upcoming year as part of its recovery strategy.
For households with a band D property, the annual council services charge will rise to £244.13, up from £237.04 this year. This figure sits alongside additional charges—£1,763.46 for Gloucestershire County Council services, £340.58 for police funding, and an extra £45.82 for those living in Quedgeley to cover Town Council costs.
Council leader Jeremy Hilton acknowledged the severe financial challenges faced by the city, describing it as being “squeezed… financially in recent years” and facing “complex and severe” difficulties that place Gloucester among the worst-hit councils nationally. He commended council officers for their diligent efforts in crafting a recovery plan that gained government approval, thereby enabling the council to set a balanced budget.
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Alongside this budget, Gloucester City Council plans to allocate £1 million towards local government reorganisation and aims to raise £2 million over two years through cost savings and increased fees. Additionally, the council expects to generate £500,000 in income from the Forum next year.
To help repay the government loan, the council intends to sell some of its 277 properties. However, budget amendment proposals by Conservative and Labour groups were rejected, except for a Community Independents proposal to allocate £3,500 for Gloucester Day, which received unanimous support.
Notably, Conservative leader Stephanie Chambers proposed removing fees for replacement green boxes, blue sacks, and food caddies, funded by cuts to communication budgets and council subscriptions. However, finance officers advised against this plan. Conservative councillor Sajid Patel echoed concerns raised by Gloucester MP Alex McIntyre regarding governance and claimed councillors are sidelined by senior leaders.
Labour leader Terry Pullen called for an apology from Cllr Hilton over the council’s dire financial state, citing an Ernst & Young audit that highlighted critical weaknesses in financial planning and reporting. Pullen criticized increased fees and service cuts and emphasized that without government intervention, the council’s situation would be worse. His proposal to establish a £25,000 community grant fund, offset by reductions in communications and festivals budgets, was also rejected.
The final budget passed with 19 votes in favor and 14 against, with Liberal Democrats, Community Independents, and Conservative Lorraine Campbell voting for the budget, while the majority of Conservative and Labour councillors opposed it.