A bombshell independent finance review has sparked a political blame game as Bedford Borough Councillors clash over the actual state of the authority’s finances and the credibility of the Chartered Institute of Public Finance and Accountancy (CIPFA).
Comments over the last few weeks have ranged from a claim that council tax is lower than it could be due to a freeze on increases between 2012 and 2025, to the Liberal Democrats stating that the council is “in effect bankrupt.”
The draft report, exclusively revealed by the Bedford Independent last week (15 July), said the council needs to tighten spending and boost income to avoid a Section 114 notice.
Read: Bedford Borough Council told to tighten spending and boost income to avoid Section 114 notice
[Bedford Borough Council] needs a robust, credible strategy to secure short-term and longer-term financial sustainability that shows the council is prepared to act boldly and (where appropriate) make ‘politically unattractive’ decisions,’ said the report.
It added: “We believe the council is already in s114 territory.”
Section 114 means a council’s forecast spending exceeds its income, and it cannot meet its financial obligations without drastic measures.
As the Bedford Independent broke the story, the CEO at the council, Laura Church, briefed staff on the draft report’s findings.
A council spokesperson also confirmed to the Bedford Independent that the review was “a proactive step” to sense-check its approach and identify risks early.
“While the findings remain in draft, the emerging messages are clear and already informing the actions the council is taking,” they said.
“Bankrupt”
Cllr Henry Vann, leader of the Liberal Democrat Group, claimed he had been told the council “is ‘in effect bankrupt’” and urged the mayor to produce a recovery plan and cancel “wasteful” spending.
However, the report’s methodology has also come under criticism in the council chamber by Vann’s party colleagues.
Cllr Christine McHugh (Lib Dem, Goldington) gave a health warning on CIPFA reports during the Budget and Corporate Services Overview and Scrutiny Committee (10 July), before the Lib Dems’ bankruptcy claim.
McHugh told the Committee, “CIPFA, we should be clear, they have not looked at any level of granularity at local budgeting and spending.
“So they have not looked at spending on the mayor’s pet projects or reckless borrowing. And instead, they propose solutions that are across the country.”
She continued, “So they go, ‘Oh, look at your council tax reduction scheme, look at your green waste charging’. They’re plucking these out that are not Bedford-specific solutions.”
Dishonesty
Cllr Graeme Coombes (Wixams), Conservative group leader, told the Local Democracy Reporting Service (LDRS), “Cllr McHugh’s comments are a textbook example of political dishonesty.
“She wants to quote CIPFA when it suits her, then dismiss it when it exposes the damage caused by 14 years of Liberal Democrat control. CIPFA is the UK’s recognised authority on public sector finance. Their review is not political. It is forensic.
“It is based on Bedford-specific evidence, direct engagement with council staff and members, analysis of financial data, and an assessment of the council’s risk, governance, and capacity.
“Now, when real reform is finally being delivered, they want to stand in the way and pretend they were never responsible.”
Portfolio holder for finance and corporate services, cllr Marc Frost (Wixams) added, “It is factually wrong to claim CIPFA’s recommendations are not based on Bedford’s realities.
“The review examined our actual budget position, our past borrowing, our savings targets, our reserves, and our financial governance. It is not generic advice. It is a Bedford-specific diagnosis of what went wrong and what needs to be fixed.
“The Council Tax Reduction Scheme was not randomly selected. It was highlighted because it represents a major area of discretionary spending that CIPFA says is no longer sustainable.
“Cllr McHugh accuses this administration of protecting so-called pet projects, but what she really wants is for us to keep pretending the Lib Dem choices were cost-free. They were not.”
The report is due to be finalised and published officially in the coming weeks.
By John Guinn, Local Democracy Reporter
Additional reporting by Paul Hutchinson, Bedford Independent
