Gloucester City Council, already buoyed by a £15.5 million emergency government loan earlier this year, has disclosed a new overspend of more than £1.12 million for the third quarter of the 2025/26 financial year. This revelation raises fresh concerns about the council’s financial management and governance practices.
The loan, approved by ministers in February 2025, aimed to rescue the Liberal Democrat-led council from near bankruptcy after audits revealed significant past overspending. The government allocated £9.05 million for immediate needs, with additional funds earmarked for the 2024/25 and 2025/26 budgets.
However, recent financial reports highlight overspending in several critical areas: commercial property by £559,000, parking, markets, and street trading by £387,000, cemeteries and crematorium services by £114,000, and other sectors contributing to the deficit.
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Labour group leader Terry Pullen expressed shock over the new figures, stating, “I was assured new financial controls were in place, but clearly, that is not the case. The responsibility lies with the council’s leadership, who promised accountability following the government bailout.”
Conservative leader Stephanie Chambers added that she had previously called for independent forensic accountants to assess the council’s finances fully. She criticized the current administration for misleading assurances and emphasized the impact on residents facing higher taxes and reduced services. “Residents deserve transparency and accountability for this ongoing financial mismanagement,” she said.
Alastair Chambers, leader of the Community Independent group, echoed these sentiments, urging that those accountable should face consequences. “The public won’t forget repeated assurances that everything was under control, only to be let down,” he remarked.
In response, Deputy leader Declan Wilson defended the council’s efforts, highlighting significant progress since the financial issues emerged in September 2025, following the aftermath of a 2021 cyber attack that severely disrupted finances. Wilson emphasized that recovery is ongoing and that strengthened budget controls introduced from December 2025 are improving oversight.
“These overspends should be seen in the context of a complex and evolving recovery,” Wilson said. “The council is committed to transparency and responsible financial management as it works to resolve long-standing issues.”
Nevertheless, the new overspend continues to erode public confidence, placing pressure on Gloucester City Council’s leadership to demonstrate genuine accountability and sustainable financial stewardship.