Struggling council gets £15.5m exceptional funding

24 February 2026

Duncan CookGloucestershire

Gloucester City Council will now be able to borrow or sell off assets to balance its budget over the next two years

BBC Several docked boats, with large red-brick warehouses behind them. The sky is bright blue, it's a sunny day. — Gloucester City Council will now be able to borrow or sell off assets to balance its budget over the next two years

A struggling council has been given permission to sell some of its assets to help balance its budget.

The government confirmed that Gloucester City Council could use £15.5m of exceptional financial support (EFS) 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-run council said this had been caused by a number of factors, including an over estimation of how much some services would make.

The EFS does not secure any new funding, but instead allows councils to borrow or sell off assets.

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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 before the council's budget meeting on Thursday, when councillors will vote on a 2.99% council tax increase.

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."

The news was welcomed by the city's Labour MP, Alex McIntyre.

"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.

The council was hit by a cyber attack in December 2021, from which it took years to recover.

In December, councillor Declan Wilson, the deputy leader, said that the council "was probably already bust" when they took over from the Conservatives in May 2024.

They then applied to the government to be able to borrow or sell assets, and use up to £15.5m to fund services.

The council is due to be abolished in local government reforms, being replaced in the next two years by a unitary authority.