Special meeting on Gloucester's financial crisis called
Gloucester City Council will discuss its financial crisis in public next week after successful calls from opposition councillors for a special meeting
Gloucester City Council will discuss its financial crisis in public next week after successful calls from opposition councillors for a special meeting before Christmas.
The authority needs a bailout loan from the Government of between £12.5m and £17.5m to avoid effectively becoming bankrupt.
Local authorities cannot technically go bankrupt but can issue a section 114 notice which means they would not be able to commit to any new spending.
And this is the situation the City Council will be in if it does not secure the emergency funding.
Cabinet is due to approve plans this week to submit an application for exceptional financial support from the Government.
And they have announced a recovery plan which would involve selling assets and improving the income it receives from services as well as cutting jobs.
The council has discovered a £7.8m overspend over the last two financial years as their accounts have now been checked by external auditors.
And opposition leaders from Labour, the Conservatives and Independents believe a special meeting on the financial crisis should be held as soon as possible.
There were fears the issue would be “kicked into the long grass” after initial cross-party requests for a meeting before the end of the year were blocked.
However, Mayor Ashley Bowkett (LD, Barnwood) has now agreed a meeting can be held on December 18.
Ahead of this announcement, Labour group leader Terry Pullen (L, Moreland) said the people of Gloucester have a right to know what is going on.
“Opposition leaders at the council have written to the mayor requesting an emergency full council meeting before Christmas to discuss the financial crisis,” he said.
His initial request had been refused, he said, and a private councillor briefing was being arranged in December which will be in secret and behind closed doors.
“The people of Gloucester have a right to know what is going on, they expect their council to be transparent, honest and act in a democratic way,” he said.
However, he was pleased to hear the mayor had “finally agreed to a meeting before Christmas”.
“I will do everything I can to make sure the facts about the council’s financial incompetence are brought out into the open and not covered up or swept under the carpet.”
Conservative group leader Stephanie Chambers (C, Quedgeley Fieldcourt) said refusing a public meeting would have been a “betrayal of local democracy”.
She believes delaying the meeting until the New Year would have been a dereliction of duty to the people of Gloucester
“When the council faces bankruptcy, hiding behind closed doors is indefensible,” she said.
“Residents deserve answers, not secrecy and delay.”
And Community Independent Councillor Alastair Chambers (Matson, Robinswood and Whiter City) said taxpayers deserve transparency.
The City Council said it categorically rejected any suggestion they had “attempted to cover up” the financial situation they are in.
“Since historic issues were identified in the summer – relating to several years of incorrect financial reporting, exacerbated by the December 2021 cyber-attack – Gloucester City Council has been entirely honest and transparent with residents, elected members and the government as new information has emerged,” a spokesperson said.
“We have also published full details of additional, more recent financial challenges, including shortfalls in income from areas such as lower revenue and increased borrowing costs due to delays in completing The Forum, as well as a drop in income at the city crematorium.
“The council’s financial position will be discussed by Cabinet members in public this Wednesday evening. As is standard practice, both the media and residents may attend, and residents have had the opportunity to submit questions in advance.
“We are working closely with the relevant government department and the Chartered Institute of Public Finance and Accountancy to establish the full picture and implement a robust financial recovery plan. We are grateful for their support and guidance throughout this process. Our priority remains to provide the best possible services for everyone across our city.
“It is correct that a request for an additional full council meeting has been made. Following careful consideration, the Mayor, Cllr Ashley Bowkett, has agreed that a special council meeting will be held on December 18 – the day after an already scheduled briefing on the financial situation for all councillors.”
Cllr Bowkett said: “There has been significant pressure from some councillors to convene a Special Council Meeting, and I have agreed one can be held on December 18, once members have had the chance to hear the facts of the situation.
“This will enable an informed and respectful discussion. Above all else, I will insist that the meeting maintains a clear focus on delivering the best for the people we serve.”