Lib Dems uncover £1.5m black hole in Gloucester City Council accounts left by Conservatives

There are warnings of financial difficulties and impending cuts at Gloucester City Council after serious issues were discovered in the unaudited accounts handed over by the previous Conservative administration.

Since taking control of the council in May 2024 following the local elections, the Liberal Democrat administration has unravelled a series of hidden financial shocks left by the Conservatives. 

The council’s accounts show:

•             2022/23: Conservatives reported an overspend of £278,000. The true figure was £735,000.

•             2023/24: Conservatives reported an overspend of £288,000. The true figure was £826,000.

•             Aspire Leisure collapse: The Conservatives promised to transfer £360,000 from earmarked reserves to cover costs. The financial reports given to council did not include this adjustment meaning Budget decisions were made using the wrong numbers.

Councillor Declan Wilson, deputy council leader and cabinet member for resources, said: “In opposition we repeatedly warned the Conservatives there could be shocks hidden in the unaudited accounts.

“The Conservatives promised draft accounts before the 2024 elections, but they never materialised. Instead, we were left with spreadsheets and guesswork.

“We have now untangled the mess and found the council has £1.5 million less than reported. 

“For an authority with a £19 million budget, this is perilous. 

“I have halted all discretionary spending while we get to grips with the situation. 

“Opposition parties must take this seriously and stop playing political games as the people of Gloucester deserve better.”

Councillor Jeremy Hilton, the Liberal Democrat leader of Gloucester City Council, added: “This £1.5 million black hole is the legacy of Conservative mismanagement. 

“They failed in their most basic duty to deliver audited accounts and left Gloucester’s finances in chaos.

“It has taken a new finance officer and weeks of forensic work to uncover the truth. 

“Their legacy is appalling – half-finished projects, broken promises, and now a multi-million pound hole in the books.

“Clearly this financial crisis is 100% the fault of the Conservatives who were in control of the city council up until May 2024. They will be embarrassed.”