Gloucester’s Financial Crisis Unlikely to Hinder County Council Reorganisation, Says Leader

Gloucester City Council’s urgent financial challenges have raised concerns about the future of local government reorganisation in Gloucestershire. The council requires emergency funding of between £12.5 million and £17.5 million from the Government to avoid issuing a section 114 notice, which would effectively halt new spending commitments.

While councils cannot technically declare bankruptcy, a section 114 notice signals severe financial distress. Gloucester’s leaders have formally requested exceptional financial support, acknowledging the need to repay this aid. This financial crisis comes at a critical time, as Gloucestershire is considering major changes to its local government structure. Currently, three proposals are under review that could merge district councils with the County Council to form one or two unitary authorities.

At a recent special City Council meeting, public members expressed worries about how Gloucester’s financial instability might complicate these plans. David Redgewell, a concerned citizen, remarked on the difficulty of merging a council in financial crisis, referencing past challenges faced by other councils like Birmingham. He cautioned that if Gloucester remains in financial turmoil during reorganisation, it could create significant obstacles when integrating with neighboring districts such as the Forest of Dean or Stroud, or even broader entities like the West of England Combined Authority.

However, Jeremy Hilton, the Liberal Democrat leader of Gloucester City Council, dismissed these fears. He emphasized that Gloucester’s current fiscal situation is unlikely to affect the ongoing local government reorganisation process. “There’s still loads of work to do. That’s where we are,” Hilton said. “I don’t think there is going to be a direct impact on the three options the Government is considering.”

As the council navigates its financial recovery, officials remain focused on advancing the reorganisation plans that could reshape Gloucestershire’s governance landscape in the near future.