Council could wipe out its reserves in two years

SOUTH Gloucestershire Council could be forced to exhaust all its financial reserves within just two years to balance the budget, finance chiefs warn.

- ADAM POSTANS Local Democracy Reporter

The authority faces a £49 million deficit over the next four years.

A report to cabinet said the organisation could balance the books for the 2026/27 financial year from April by using £26m of reserves, but could not beyond that.

It said: "The council has financial reserves available of £25.8m.

"We can set a balanced budget for the 2026/27 financial year and the 2027/28 gap can be partially offset by exhausting remaining reserves, but they will run out after two years.

"South Gloucestershire Council is in a stable financial position if the current budget gap is resolved within the next 12 months.

"Council has usable reserves of £78.3m.

"Of that, £42.5million is set aside for contractual commitments and to address specific statutory needs as set out in the reserves policy."