The UK government has approved £15.5 million of emergency support to help Gloucester City Council cover its day-to-day costs, while it sets in motion a plan to recover from years of overspending.
The council revealed its dire financial situation in December 2025, with the delayed publication of accounts showing it had overspent by millions for the previous four years – leaving it with no option but to apply to government for exceptional financial support (EFS).
The government has now agreed in principle to provide the council with £9.05 million, along with £3.89 million to cover 2024/25 and £2.56 million for the current financial year.
This support will allow the council to use capital funding to cover essential services, while it implements a recovery plan that includes the sale of some of its property.
The funding is part of £78 billion in EFS being made available to local authorities across England. The government says the support will help councils move towards sustainable recovery; and recognises the true cost of providing services in deprived areas.
It says the need for councils to apply for support reflects the worst of an outdated funding system, which it is taking steps to tackle.
Gloucester MP Alex McIntyre, who lobbied for the support, told Carmelo Garcia for the local democracy reporting service: 'I am delighted that after a period of intense work, and to be honest some sleepless nights, the emergency funding support for Gloucester City Council has been secured.
'It is a huge relief that commissioners will not be called in to run the city. Without the emergency funding we would have gone bankrupt, that’s how serious things have been'.
He says that he and ministers remain concerned about whether lessons will be learned by the council, around governance, the auditing of accounts and 'poor commercial investments and decision-making' over recent years, adding: 'This cannot go on.
'I hope that the city council will take this opportunity to reflect on what has gone wrong and put in place serious plans to put things right'.
City council leader Jeremy Hilton said he is 'clearly relieved' to have secured the support and that the next step for the council is to approve its proposed budget and five year spending plan this week.
He said that if the council's recovery plan is successful, it should be able to turn its financial situation around 'over a couple of years'.
