21/03/2022

Cyber Attack Recovery Bill Concerns for Gloucester City Council

In the wake of a successful cyber attack that occurred in December of last year, Gloucester City Council is working to reverse damages wrought upon its systems.


But with the final recovery bill expected to cost hundreds of thousands of pounds, members of the council have understandably been expressing their concerns.

In order to restore several of its affected online services, a £380,000 reserve was created; the Government and Local Government Association also provided the council with a collective £250,000.

Despite the total £630,000 figure, councillors have been voicing their worries over what the true financial cost of the cyber attack may in fact equate to.

Jeremy Hilton, Leader of the Liberal Democrat group, is doubtful that the funds will suffice, and stated that the ruling Conservative group was either “refusing to estimate the final bill or doesn’t have a clue as to what it could be”.

“The ever-rising cost to the city council in dealing with the recovery from the cyber attack remains a big worry,” Hilton went on. “I suspect the £630,000 already put aside is not nearly enough. I expect many council services to continue to suffer.”

By working with both the National Crime Agency and National Cyber Security Centre, Gloucester City Council has been able to uncover an alleged link between the attack and Russian hackers.

Terry Pullen, Labour group leader, stated that considerable uncertainty remained about the attack’s subsequent financial impact, according to the LDRS (Local Democracy Reporting Service).

“We know that the council has allocated £380,000 into its reserves as an attempt to mitigate losses, but it is felt that whilst this may help, the final costs could be significantly more than this,” Pullen explained.

Hannah Norman, Deputy Leader of Gloucester City Council, added that, once the full costs were known, the council would need to identify all sources of funding.

“The costs will be split between capital and revenue – to fund this, the council will either use other earmarked reserves, capital receipts or prudential borrowing,” Norman said.

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