The Government is facing strong criticism for implementing “extreme” funding cuts to Gloucestershire County Council, while allegedly relying on “smoke and mirrors” tactics to obscure the true extent of reductions.
According to Shire Hall officials, the Fair Funding Review has dealt an unfair and severe blow to the county’s budget. Although finance officers are working to clarify the detailed figures, councillors assert that the scale of cuts is already evident.
Liberal Democrat Councillor Colin Hay, cabinet member for finance at Gloucestershire County Council, stated, “The Government has combined various grants, burying crucial details in complex accounting to mask the drastic reduction in our funding. This is a blatant attempt to distort the real picture.”
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These significant cuts come at a time when local councils are under immense pressure, tasked with managing costly local government reorganisations. The Lib Dems emphasize the lack of consideration for the ongoing challenges faced by councils.
Council leader Lisa Spivey expressed deep concern, saying, “We are on the front lines delivering essential care and safety services, and we need adequate funding to protect the most vulnerable. Removing key financial support undermines our capacity to do this work.”
She continued, “I am both appalled and angered by the Government’s decision. We will continue to fight for our residents because Gloucestershire deserves better than such a short-sighted and irresponsible approach to local funding.”
Meanwhile, the Ministry of Housing, Communities and Local Government (MHCLG) reported that the provisional settlement for 2026/27 will provide nearly £78 billion in core spending power for local authorities across England—a 5.7% increase in cash terms compared to this year. Over the multi-year funding period, MHCLG anticipates a 15.1% cash-term rise, worth over £11 billion, compared to 2025-26 figures.
They claim that these reforms will ensure funding is fairly allocated, prioritizing areas and services with the greatest need. This includes £3.4 billion in grant funding confirmed at the 2025 spending review.
An MHCLG spokesperson said, “We will allocate almost £78 billion for council finances next year and fix the outdated and unfair funding system inherited, so funding truly aligns with local needs. This includes £657 million for Gloucestershire County Council to support high-quality public services for local residents.”