Government bailout confirmed for city council
PAMillions of pounds of emergency funding has been secured for a struggling city council.
Gloucester's Labour MP Alex McIntyre confirmed Gloucester City Council will receive £15.5m of government funding between now and 2027.
The authority found out last year it had a financial deficit of £7m combined from both the previous and current financial year, and it no longer has any cash reserves.
The Liberal Democrat minority administration said this had been caused by a number of factors, including an over estimation of how much some services would make.
On Monday the Government announced the financial support for 35 councils across England including Gloucester City Council.
Jeremy Hilton, the council's leader, said: "As a council, we will take all reasonable steps to deliver for all residents and ensure this support is a temporary measure and only drawn down if absolutely necessary."
It comes days ahead of the council's budget meeting on Thursday, when councillors will vote on a 2.99% council tax hike.
Alison Turner, the council's chief finance officer, said: "We are already making good progress in responding to the issues raised by our external auditors last year."
McIntyre said he was "delighted" to share the news that after a period of intense work the emergency funding support for Gloucester City Council had been secured.
"I am relieved that this bailout has been secured and that commissioners will not be called in to run the city, as the people of Gloucester deserve better. I will be meeting with Ministers again soon to continue to make the case for our city," he said.
"However, I remain seriously concerned about what lessons will be learned by the council. Ministers have raised issues with me around governance, lack of audited accounts and poor commercial investments and decision-making over recent years. This cannot go on.
"I hope that the City Council will take this opportunity to reflect on what has gone wrong and put in place serious plans to put things right.
"For my part I will continue to work day in and day out to secure the best outcomes possible for the people of our city," he added.
Follow BBC Gloucestershire on Facebook, X and Instagram. Send your story ideas to us on email or via WhatsApp on 0800 313 4630.
