Bedford Borough Council has confirmed that £10 million of borrowing arranged in February forms part of normal treasury management activity and is not connected to Exceptional Financial Support (EFS).
Cllr Marc Frost (Wixams, Conservative), finance portfolio holder, told the Local Democracy Reporting Service (LDRS) the refinancing was routine financial management undertaken by councils across the country to manage cash flow and reduce financial risk.
The LDRS had asked the council about two £5 million loans recorded in the latest UK Debt Management Office (DMO) update.
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“Like councils nationwide, Bedford Borough Council actively manages its borrowing to keep risk under control and ensure stable cash flow,” councillor Frost added.
“On 13 February 2026, we refinanced £10 million of borrowing the council already held, moving it from short-term borrowing into longer-term Public Works Loan Board loans.
“This is sensible treasury management and helps make our financial planning more stable and predictable.
“To be absolutely clear, this is not new borrowing, and it does not increase the council’s overall debt. It is also not connected to Exceptional Financial Support.
“This was simply prudent financial housekeeping that councils carry out every day to keep their finances on a steady footing.”
The council said the refinancing replaced existing short-term borrowing arrangements with two Public Works Loan Board loans of £5 million each, with terms of 2.5 years and 3.5 years.
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Adding that structuring loans with different maturity dates is “standard treasury practice” and helps reduce refinancing risk by avoiding multiple loans maturing at the same time.
Both loans are being repaid using Equal Instalments of Principal, meaning the council repays the borrowing steadily over the life of the loans rather than facing a single large repayment at the end.
The refinancing “improves certainty” around borrowing costs and supports more stable cash-flow planning while remaining fully within the borrowing limits approved by Full Council under the Treasury Management Strategy.
By John Guinn
Local Democracy Reporter
