City council 'probably went bust 18 months ago'

Members of a council have been told it "probably" went bust more than 18 months ago.

The ruling cabinet at Gloucester City Council has agreed to apply to the government for a bailout of up to £17.5m.

Leader Jeremy Hilton said at a meeting on Wednesday that the biggest financial drain was commercial investments, with one shopping centre - King's Walk - costing the council £1m a year.

Deputy leader Declan Wilson claimed his party was "handed a council which was probably already bust" when taking over from the Conservatives in May 2024, but the Conservatives accused the new administration of "drip feeding" information.

Mr Wilson added he thought the current crisis is "probably the biggest" the city council has faced in its history.

At Wednesday's meeting, the Liberal Democrat administration discussed how the financial crisis had come about.

A report outlined how the council had made £200m in commercial investments – which overall are losing them money.

The King's Walk shopping centre has never made money, councillors were told.

There, and at nearby Eastgate, empty shops have seen rental income drop, while interest rates have risen.

Deputy Conservative group leader Saj Patel claimed the current administration was not being open.

He said: "Is there game-playing going on here, where you're drip feeding us information?"

Labour members criticised both other parties, and warned of what lies ahead.

"That is very alarming indeed," said Labour group leader Terry Pullen.

"King's Walk is losing a million pounds a year. If that is just King's Walk what about other areas across the city - what are we not being told?"

The ruling cabinet agreed to ask the government for Exceptional Financial Support, with loans of between £12.5m and £17.5m.

The council has also said it will try and get the empty shop units filled, and plans to sell some of its own commercial properties.

Further savings may also be made by reducing opening hours at the city museum, increasing parking charges, and cutting about 10 jobs.

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