LGA Review Flags Capacity Gaps After Budget Shock
A review has found Gloucester City Council’s finance department has been “firefighting” for the past three years. The assessment was carried out by the Local Government Association (LGA) after the council’s financial problems emerged last autumn.
The council said it faced a £7m deficit last year and had no cash reserves. It was later granted a £15.5m government bailout to help stabilise its finances and improve its position.
The review praised the “dedication and professionalism” of staff. But it said the team has been held back by insufficient capacity, high vacancy rates, and a lack of structural clarity. It also said confidence in the finance function is “particularly low.”
Cyber Attack and Turnover Linked to Weaker Resilience
Council leaders have pointed to several drivers behind the current position. They cited the 2021 cyber attack, poor investment performance, and higher interest rates on borrowing.
The LGA review said the disruption from the cyber incident and staff turnover reduced the department’s resilience. It described the service as a group of “unsettled” individuals rather than a cohesive team. It said the unit has been “stretched thin” for three years.
The report identified five areas needing urgent work. Those included a new internal structure, stronger processes, improved performance management, and a broader culture shift.
Leadership Promises “Decisive Action” and More Support
Council leader Jeremy Hilton said the review offered a frank assessment of what must improve. He said the council will invest in the “capacity and capability” of the finance team.
Alison Turner, head of finance and resources, said staff showed real commitment under difficult conditions. She said the authority is focused on providing structure, support, and the tools needed for success.
Jon McGinty, head of paid service, said the council is putting new structures, systems and leadership in place. He said the goal is a more resilient and proactive finance service that supports the whole organisation.
Opposition Condemns Delay and Warns Wider Problems
Opposition groups said the findings raise serious concerns. They also criticised the time taken to publish the review.
Labour group leader Terry Pullen described the leadership as “secretive” and “disgraceful” for waiting three months to release the document. He said staffing and skills shortages are not limited to finance. He added that the council is struggling to deliver services residents pay for.
Alastair Chambers, leader of the Community Independent Group, said the report “paints a deeply worrying picture.” He said staff had been failed by the system around them. He called for full implementation of the recommendations and tighter scrutiny of how the situation developed.
Last week, the council agreed to increase its share of council tax by 2.99% from April. The council said this equals about £7 per year for a Band D property.