Gloucester City Council is facing fresh financial pressures after a review of its accounts revealed a £1.5 million gap compared to figures reported under the previous Tory administration.
The discrepancies were uncovered by the Liberal Democrat-led council, which took control in May 2024 following the local elections. Officials said the overspends and accounting adjustments had not been fully reflected in reports presented to councillors last year.
The review highlighted a number of differences between reported and actual figures:
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2022/23: An overspend of £278,000 was reported, but the true figure was £735,000.
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2023/24: An overspend of £288,000 was reported, but the true figure was £826,000.
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Aspire Leisure collapse: A promised £360,000 transfer from reserves was not shown in financial reports, meaning councillors were basing budget decisions on incomplete data.
Council officials say the discrepancies add up to around £1.5 million less in available funds than previously thought, a significant shortfall for an authority with an annual budget of about £19 million.
Deputy council leader and cabinet member for resources, Cllr Declan Wilson, said discretionary spending had been frozen while the situation is fully assessed.
He described the findings as a “serious issue” and warned that the shortfall could affect the council’s ability to deliver services and fund projects in the months ahead.
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.”
A report on the updated financial outturn is due to be presented at a cabinet meeting on September 10th, when councillors will consider the implications and discuss the next stages of financial planning.