Council reduces £1.5m predicted budget shortfall

Gloucester City Council faced a budget shortfall of £1.5m

A council says it has reduced a forecasted shortfall in its budget from £1.5m to £288,000.

Gloucester City Council said the deficit was contributed to by a spike in energy bills, affecting leisure facilities and the crematorium, and the cost of temporary housing for homeless people.

Civic chiefs said they brought the deficit down by buying property for temporary accommodation, bringing in Freedom Leisure to run leisure centre GL1 and reopening Longsmith Street Car Park.

Overview and scrutiny committee chairman Andrew Gravells said: "We are not out of the woods yet but it’s worth marking."

He told Monday's meeting: “The forecast at the end of quarter one in the year we are looking at was for quite a large deficit of £1.5m.

“By the end of the financial year that’s been reduced to £288,000.

“Given where we began 12 months earlier, it’s pretty good and I’m sure a lot of authorities would welcome that percentage change during the year.”

Finance and resources head Greg Maw said "everyone worked together" to tackle the challenge of the shortfall.

Councillor Stephanie Chambers added: “There was a significant challenge within the temporary housing.

“However, what came out from that was not only to paddle out of that situation but the services improved.

“We’ve got some homes for families without shared facilities and that is fantastic.”