Council may go 'bust' if politics not put aside

There are concerns a city council could "go bankrupt" if party politics is not put aside as they seek a bailout of up to £17.5m from the government.

Councillors were given an update on the authority's dire financial position at a special meeting in Gloucester on Thursday.

The city council will now submit its application to the government for a loan of between £12.5m and £17.5m but there are concerns that the authority is under no overall party control meaning any proposals could be voted down.

"We have to work together on this. I really hope all parties will really work together because this is the only way we are going to do this," deputy leader Declan Wilson said.

An exceptional support fund application and a robust financial recovery plan is the only way the council can avoid having to issue a section 114 notice, leaders say.

While local authorities in the UK cannot technically go bankrupt, such a notice indicates they would not be able make new spending commitments.

Liberal Democrat Mr Wilson, who is the cabinet member responsible for resources, said their talks with the government about a bid for an emergency financial support had gone well.

The Chartered Institute of Public Finance and Accountancy (CIPFA) has been providing the support.

Since the announcement of overspends, first under the Conservative administration, then continuing under the Liberal Democrats - and appearing to get larger - political groups have blamed each other for the financial mismanagement.

Stephanie Chambers, the group leader of the Conservatives said the party were not often given detailed briefings from officers on the state of the finances when in power.

"The inclination is there that we should of known what's going on, but obviously as members of the council you don't get that level of detail," Mrs Chambers said, adding it does not mean councillors were not asking.

"I do regularly ask for that level of detail but I am told constantly you are not entitled to it," she said.

Labour group leader Terry Pullen also voiced concerns around the accuracy of the information councillors are receiving.

"What I worry about is that the councils finances were run on best estimates," Mr Pullen said, adding he's concerned whether "the information we're getting is accurate".

Community Independents group leader Alastair Chambers said the council was on the brink of bankruptcy and was "being kept alive only by a begging bowl sent to government".

Mr Declan Wilson said he understood councillors "letting off steam" because of the stark situation the council found itself in but was confident they would work together to resolve the financial issues.

A decision on the emergency loan is expected from the government in February 2026.

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