Bedford Borough Council’s borrowing peaked at £130 million last year, breaching four of its own Treasury Indicators and prompting concerns over the level of debt, according to a report presented to the executive.
The Treasury Management Annual Report 2024/25, discussed by the executive on Wednesday (15 October), showed total external debt rose from £88.4 million in 2023/24 to £129.95 million by 31 March 2025.
The portfolio holder for Finance, cllr Marc Frost (Conservative, Wixams and Wilstead) said: “[This is] reflecting the timing of capital programme funding and short-term borrowing to manage cash flow pressures.
“There are a couple of large debtors since repaid and debt today is closer to the £90 million mark. Importantly, no new long-term loans were taken out.
“Four of the seven potential maturity indicators were technically breached primarily due to short-term borrowing mix, but this was a conscientious and prudent response to market conditions rather than a failure of control,” he said.
Read: £11.5m Bedford Borough Council savings plan includes cuts to staff, voluntary service and libraries
On the investment side, the council achieved an average return of 5.24 per cent, above the sector average, on £38.6 million of year-end investments. Its pooled funds showed an unrealised loss of £2.657 million, which is covered by statutory accounting rules until 2029.
“While the headline numbers are significant, the message is clear, we’re maintaining a disciplined approach to managing debt, liquidity, and investment risk,” cllr Frost said.
The Treasury Management report will now go to Full Council for approval.
By John Guinn
Local Democracy Reporter
