Gloucester residents to pay more for less as council backs tax hike
Gloucester City Council has approved its budget
Last updated 27th Feb 2026
Gloucester residents will be paying more tax and charges for fewer services from April as councillors agreed a 2.99 per cent tax increase last night (February 26).
The financially beleaguered Gloucester City Council was given a lifeline earlier this week as the Government agreed in principle to a £15.5m bailout.
This vital funding saves the authority from having to issue a section 114 which would have made it effectively bankrupt.
And this allowed councillors to approve the almost £27.7m budget for next year which will be part of their recovery plan.
This means the annual charge for a band D property for City Council services will be £244.13 up from £237.04 in the current year.
The total bill for such a property will also include £1,763.46 for Gloucestershire County Council and £340.58 for the police and those in Quedgeley will also have to pay £45.82 for Town Council services.
Council leader Jeremy Hilton (LD, Kingsholm and Wotton) said the authority has been “squeezed and squeezed and squeezed” financially in recent years.
He also said the financial crisis the council found itself in was “complex and severe”.
“Gloucester has hit the worst of every council in the country,” he said.
He praised officers for the “donkey work” they have done in preparing a recovery plan and bid for exceptional financial support from the Government.
“The Government looked at that recovery plan as part of the application and said ‘they know what they’re doing’”, he said.
He said he was pleased with the letter and they could now set a balanced budget.
And they will be setting £1m aside for local government reorganisation and will be looking to raise £2m over the next two years by making savings and putting up fees and charges.
The council is expecting an income of £500,000 from the Forum next year, he also said.
The council has 277 properties, and will be looking to sell some of those to pay back the government loan of £15.5m, Cllr Hilton also said.
Budget amendments by the Conservative and Labour groups were voted down while one by the Community Independents to set aside £3,500 for Gloucester Day was endorsed by all councillors.
Conservative group leader Stephanie Chambers (Quedgeley Fieldcourt) proposed an amendment which would have ensured there were no fees for replacement green boxes, blue sacks and food caddies.
This would have been funded by reductions to the communications budget, withdrawing from council subscriptions and reserves. However, finance officers advised against it.
Conservative Sajid Patel (Barton and Tredworth) echoed the serious concerns of Gloucester MP Alex McIntyre’s which he raised about governance at the council earlier this week.
And decried a “lack of democracy” as he believes the council is being run by the senior leadership team and not councillors.
Labour group leader Terry Pullen (Moreland) said an apology for the council’s dire financial situation from Cllr Hilton “wouldn’t be amiss”.
He referenced a recent audit by Ernst & Young which highlighted significant weaknesses in the council’s financial processes, stability, inadequate budgetary control, financial reporting and planning.
Cllr Pullen also criticised the increase in fees and charges and the reduction of some frontline services.
He claimed that without the MP’s support and the Labour government the council would not have EFS funding and warned the authority is “not out of the woods yet”.
He proposed an amendment to introduce a small community grant fund of £25,000 and to pay for it by cutting the communications, festivals and marketing budget but this was voted down.
The budget was approved with 19 votes in favour to 14 against.
Liberal Democrats, Community Independents and Lorraine Campbell (C, Tuffley) voted in favour of the budget while the rest of the Conservative group and Labour voted against.