By Carmelo Garcia – Local Democracy Reporter
There are concerns Cheltenham Borough Council’s finances could be “sliding into crisis” as their budget is £564,000 in the red.
The authority has identified the projected overspend and Borough Chiefs say they are confident in their ability to navigate the challenges this poses.
However, former mayor Wendy Flynn is among those concerned about the situation.
The Green Party activist said residents are being asked to accept cuts and charges while the council fails to deliver on its promises.
“Cheltenham’s finances are sliding into crisis — a £564,000 overspend, broken savings promises, and reserves below safe levels all point to an administration that has lost control of the public purse,” she said.
“I’m speaking out following the release of Cheltenham Borough Council’s latest quarterly budget monitoring report, because what it reveals is deeply worrying.
“Having served Cheltenham as Mayor and worked for many years as a councillor and community advocate in West Cheltenham, I know how serious the responsibility of managing public money is.
“Cheltenham Borough Council’s latest quarterly budget monitoring report should set alarm bells ringing.
“Residents are being asked to accept cuts and charges while the council fails to deliver on its promises.
“This isn’t just disappointing — it’s a betrayal of public trust. When an administration overspends while missing its savings targets, the consequences fall on local people through threatened services and lost opportunities.
“Several examples stand out. The council’s waste policy has driven up costs, with a £128,000 overspend on receptacle purchases.
“While other underspends mean the net position is slightly positive, the policy itself is flawed — it burdens residents and risks discouraging recycling.
“The council also admits that continuing its climate emergency action plan is now a ‘challenge” due to lack of funding.
“The latest action plan points to a lowering of ambition and a shift from action to optics.
“Declaring an emergency means prioritising it in the budget, not sidelining it when money gets tight.
“Meanwhile, vacant commercial properties such as Ellenborough House have left an £85,000 rental shortfall, compounded by £60,000 in business rates. That’s basic asset management going wrong.”
She fears the spa town will be exposed to future shocks as the report also shows reserves falling below the recommended level.
“Broken savings promises today mean harsher cuts tomorrow — and it’s vulnerable residents and neighbourhood services that will be hit first,” she said.
“This latest budget failure is part of a wider pattern under the Liberal Democrat administration: a multi-million pound overspend on the MX Hub, losses at the Ice Rink, and the sell-off of public assets such as car parks, the Regent Arcade and the airport, reducing long-term income streams. Developments like Golden Valley and North Place are also delivering far less social housing, in particular homes for social rent, than policy promised.
“Cheltenham deserves better. Public money, public land, and public trust must be managed openly and responsibly, in the interests of the whole community.”
A Borough Council spokesperson said the authority remains committed to delivering services and investing in the town’s future.
“Despite the challenging financial environment faced by all local authorities,” they said.
“The latest quarterly budget monitoring report reflects the reality of operating during a period of high inflation, rising costs, and reduced government funding.
“The report identifies a projected overspend of £564,000, this is inclusive of undelivered savings of £542,000, not in addition to.
“We are managing this through robust financial controls and mitigation measures. Our reserves offer resilience against future financial risks, and we have a plan to rebuild them over the medium term as part of our financial strategy.
“Like many councils, we have faced delays in achieving some savings. However, these savings will be delivered in upcoming financial periods.
“Commitment to addressing the climate emergency remains strong, with our Climate Emergency Action Plan outlining practical steps for continued progress, even in a difficult financial climate.
“Cheltenham Borough Council has a strong track record of sound financial management and investment in the town’s future.
“We are confident in our ability to navigate the challenges ahead responsibly and transparently, and in the best interests of Cheltenham’s residents.”