Gloucester City Council strengthens financial footing with timely accounts completion
Significant improvements follow previous cyber incident and fiscal challenges
Gloucester City Council is making significant strides in restoring its financial stability, completing its Statement of Accounts for 2025/26 within the statutory deadline for the first time since the 2020/21 period.
This marks a vital step forward, reflecting considerable improvements in the Council's financial management and reporting, following challenges that surfaced last summer.
The financial difficulties were traced back to a cyber incident impacting the Council’s IT systems in December 2021, resulting in undetected overspends in subsequent years. Since discovering these issues in September 2025, the Council has enacted crucial measures to fortify its financial systems, oversight, and accountability.
With an overspend of £1.125 million reported for 2025/26, the Council plans to manage this by reallocating Exceptional Financial Support from government borrowing agreed last December as part of an ongoing recovery plan.
Key focuses of the recovery include delivering savings, enhancing financial performance, strengthening skills in Finance and Asset Management, improving budget monitoring and accountability, and ensuring robust governance.
New budget monitoring practices implemented in December are showing positive results, with budget holders collaborating with finance officers during monthly reviews to enhance spending control.
Positive service trends are noted, including Private Sector Housing’s growth in HMO registrations and parking income meeting expectations, despite rising costs in repairs and maintenance. Waste, Recycling, and Streetcare services are also seeing improved demand and income.
Additional corporate costs for specialist advice and audits have bolstered financial oversight, contributing to a sound operational foundation.
Councillor Declan Wilson expressed optimism about progress, following decisive actions since last summer, and acknowledged further challenges ahead.
The 2025–26 Outturn report is slated for discussion by the Overview and Scrutiny Committee on 6th July and will be presented to Cabinet on 15th July.
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