Council leader tells scrutiny committee city needs £15.5m government support to avoid Section 114

The councils leader told the Overview and Scrutiny Committee the authority has applied for Exceptional Financial Support (EFS) from government and that the application seeks £15.5 million to capitalise prior deficits and avoid a formal Section 114 notice.

The committee heard that the recovery plan combines that government support with expected commercial income from the Forum and other assets, plus further savings and asset disposals. The leader described the package as a short-term stabiliser and said ministers engagement with the council had been "positive" in recent discussions.

"The application has gone in for £15,500,000," the leader said, describing the plan as a "robust recovery plan" based on updated accounting and a forensic review of the councils finances.

Cabinet member for resources Declan told members the Section 151 officer has made it clear that a legally balanced 20262027 budget is achievable only if EFS is approved and that without it the council would face a Section 114 notice. "Without EFS, it's certainty," Declan said.

James Allison, the councils Section 151 officer, reiterated that position when asked directly by councillors: "If we don't get EFS funding, because we're in negative balances for previous years, a Section 114 would be the only option." He said officers could not put a percentage on the odds but described recent discussions with the Department for Levelling Up, Housing and Communities as "positive."

Councillors pressed officers on timing and consequence. Officers said an "in principle" decision might arrive shortly before full council and warned that budget papers will be published before the final EFS outcome is known because of the statutory timetable; the legal date to set the budget was noted as March 11, with cashflow consequences if set late.

Beyond EFS, the committee discussed specific cost and income lines in the money plan. Officers said the Forums first-year revenue forecast is £820,000 for 20262027, rising to about £4 million per annum when fully let. The recovery plan also assumes further savings from fees and charges, contract changes and potential asset disposals; capital receipts are not included in some baseline figures.

Members questioned a range of proposed fee increases and service changes. Officers said bereavement fees and some charges would rise after benchmarking with neighbouring authorities and that a capital programme of £5 million for crematorium replacement is included in the plan. Parking tariffs, rodent-control charges and allotment rents were among the specific items highlighted and explained by officers as efforts to reduce subsidy and cover costs.

On recycling and environmental services, officers said the council will introduce a mandatory collection stream for plastic film by 31 March 2027, a change that will require resources and new collection arrangements. The administration also outlined plans to introduce a community-organisation grant funded by proceeds from the Gloucester Lottery; officers estimated the lottery contributes roughly £30,000 to £50,000 a year to the central pot.

Housing and temporary-accommodation services were described as under sustained pressure. Officers said they had set aside a revenue support grant to mitigate TA costs and that a separate grant line of £1.7m for housing purposes is ring-fenced for prevention and statutory duties.

Committee members and officers agreed that the plan is fragile: it depends on government approval of the EFS application, disciplined delivery of the recovery plan and further difficult decisions in subsequent years. No formal vote or decision on the plan was taken at the meeting; officials said final budget and cabinet approvals will follow the statutory process ahead of full council.

The committee concluded with a reminder from the chair that papers must be circulated in good time to allow meaningful scrutiny.