Inquiry into unexpected £1.5m council overspend

The image captures a typical urban street scene in Gloucester. Dominating the foreground is a large black wheelie bin bearing the label “Gloucester City Council Transforming Your City”. Behind the bin, brick buildings line the street. The overall setting is residential
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Gloucester City Council is putting in a number of measures to keep the finances stable

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A city council is to conduct an inquiry into a £1.5m overspend it has only just discovered.

Gloucester City Council had to do its accounts manually after a cyber attack in 2021.

As a result, the council's finances had not been audited from 2022-2024 - leaving the authority in a "perilous" financial position, according to its leader.

To address the overspend the council plans to increase parking charges, review fees and charges while also revisiting the business plans of Gloucester Guildhall, museum and Blackfriars Priory.

The council has also decided to suspend the apprenticeship programme for a year and review all current temporary and interim appointments.

The Conservatives were in charge of Gloucester City Council when the £1.5m overspend took place.

The Liberal Democrats, who now run a minority administration were asked by the Labour group to launch an inquiry into the overspend.

At a cabinet meeting on Wednesday, Stephanie Chambers, the Conservative group leader, raised concerns about the timing of the announcement and the lack of information given to council staff beforehand.

In response the leader of the council Jeremy Hilton said there was "no immediate impact on any staff" and added that staff members had been briefed the morning after the cabinet papers were published.

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'Change in mindset'

During the city council cabinet meeting, the deputy leader of the council Declan Wilson suggested a "change in mindset" was needed at the council.

As no party has a majority, he encouraged all parties to work together to address the financial issues.

"We must cooperate. We have a huge financial challenge, and the only way we can get through this is if we all start working with each other," he said.

Speaking to the BBC after the meeting, Mr Wilson ruled out closing the museum or the Guildhall to save money.

Parking charges will go up from November and a full city council meeting is taking place next week where the finances will be discussed in more detail.

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