Gloucester ranked the worst funded council in England after a decade of cuts

Gloucester City Council is the worst funded council in England over the past decade, according to analysis of Government financial figures.

Between 2015 to 2016 and 2025 to 2026, Gloucester has seen a 3.9% cash reduction in Core Spending Power, the Government’s own measure of council funding.

Over the same period, Gloucester’s Core Spending Power fell from £15.9 million to £15.2 million, placing it at the bottom of the national table for Government support.

By way of comparison, Cheltenham Borough Council saw its Core Spending Power rise by 12.8%, from £14 million to £15.8 million.

Cotswold District Council’s funding increased by 19.1%, from £10.7 million to £12.7 million, while Tewkesbury Borough Council saw an increase of 27.7%, from £9 million to £11.5 million.

Across England as a whole, councils received an average cash increase of 55% over the same period.

Taking inflation into account, Gloucester’s Core Spending Power would now be worth around £21 million to £22 million if it had simply kept pace with rising costs. Instead, it stands at £15.2 million.

This represents a real terms reduction of around £6 million to £7 million per year, or approximately 30%, over the past decade.

Councillor Jeremy Hilton, Liberal Democrat leader of Gloucester City Council, said: “These figures are stark and indefensible.

“While councils elsewhere have seen funding rise significantly, Gloucester has gone backwards.

“A real terms cut of around 30% over a decade is not a coincidence. It is the result of sustained underfunding.

“This data makes clear that the financial pressures facing Gloucester are not the result of recent decisions or short term events.

“They are the product of 10 years of being consistently short changed by successive Conservative Governments.”

Council leaders say the historic funding gap has created a serious financial challenge, forcing the council to seek up to £17.5 million in exceptional financial support from Government to protect essential services.

These financial difficulties were exacerbated by poor accounting linked to a cyber attack in 2021, alongside years of shrinking budgets and Conservative complacency.

Councillor Declan Wilson, Liberal Democrat deputy leader of the council and cabinet member for finance, said the figures showed the situation had been years in the making:

“You cannot remove nearly a third of a council’s funding in real terms and expect services to survive unchanged,” he said.

“No organisation could absorb that scale of reduction without consequences.

“The Government’s own figures show Gloucester has been treated worse than anywhere else in England.

“This funding gap has forced impossible choices, fewer services, fewer staff, and growing pressure on the vital support residents rely on.”

Council leaders say the figures should serve as a wake up call for ministers as councils across the country struggle with rising demand, inflationary pressures and increasing costs.

“Gloucester has done everything asked of it, made efficiencies, reduced spending and restructured services,” Councillor Hilton added.

“Yet the council still finds itself at the bottom of the funding table. That is not sustainable and it is not fair.

“We are calling on the Labour Government to introduce a fair, needs based funding settlement that reflects the true cost of delivering services and reverses a decade of historic underinvestment.

“The Liberal Democrat administration at Gloucester City Council will continue to fight for a fair deal for Gloucester and its residents.”