Gloucestershire Constabulary dismiss bankruptcy fears
- Published
Gloucestershire Constabulary finance chiefs have dismissed fears they could go bust '"like Birmingham City Council" amid concerns over funding.
The force said it would not face bankruptcy as concerns grew over plans for a stark rise in debt, a recruitment freeze and a "blip" in officer leaving.
According to a report by Peter Robinson, the Office for Police and Crime Commissioner's (OPCC) interim chief finance officer, the force needed to find cumulative budget savings of £7m next year, with an increase year on year.
Chris Nelson, Gloucestershire's Police and Crime Commissioner, said balancing the budget was the "main priority".
Borrowing at the constabulary is expected to rise more than £31m by the year 2027 to 2028, the Local Democracy Service reports.
The force's reserves look set to drop from just under £5m to £827,000 by the same year, according to the report presented to councillors from across the county.
Finance chiefs have said increases in borrowing costs and reductions in reserve levels will increase the need to deliver sustainable savings over the medium term.
Cuts will be prioritised but delivering a balanced budget each year may well impact on future police service levels.
'A lot of issues'
Police Community Support Officer (PCSO) recruitment has been paused while the savings programme was being developed.
The rise in borrowing, which is linked to an IT upgrade, was questioned by Councillor David Willingham.
He said: “You’ve got your borrowing levels almost taking up three times more minimum revenue provision (MRP) which seems to be a very challenging financial position to leave either yourself or your potential successor in.
“If you are lumbering yourself or your successor with that massive MRP there are going to be quite a lot of issues.”
Asked how the borrowing would be paid back, Mr Robinson said the IT project was about "organisation change" and borrowing would not continue in the long term.
“It looks like a lot and the MRP is going up,” he said.
“But hopefully it will come down. We need to balance our budget so we are saying to you because we are borrowing, as you’d expect, there is going to be more interest.
He added: "It’s not Birmingham City Council, I can assure you that."
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