Bedford Borough Council’s debt has already fallen from the level reported earlier this week, according to local Conservatives, who claim figures cited in national analysis painted an “out-of-date snapshot”.
The BBC Shared Data Unit reported on Wednesday (27 August) that the council’s borrowing had risen from £87.7m at the end of 2023/24 to £129m by April 2025 – a 47 per cent increase, equivalent to £679 per resident.
But the portfolio holder for corporate services and finance, cllr Marc Frost (Conservative, Wixams and Wilstead), said the increase was temporary and linked to delays in government payments for projects including Rivertree School and housing benefit reimbursements.
Read: Concerns raised as councils’ debt rises across Bedfordshire
He added that this money had now been received, reducing the council’s debt to “around £92.7m”.
“The roughly five per cent increase in debt comes as the council faces significant pressures in Temporary Accommodation, Children Services and Adult Social Care, areas where demand reached unprecedented levels,” he said.
“These challenges are not unique to Bedford borough; councils across the country are facing similar financial strain.”
Proportionate and affordable
Cllr Frost said that borrowing “supports long-term investment and remains both proportionate and affordable”, with debt financing accounting for around five per cent of the council’s net revenue.
That, he said, was in “full compliance” with national codes and below the 10 per cent level at its highest peak.
The national picture shows councils across the UK added £7.8bn to their combined debt in the year to April 2025, with the total reaching £122.2bn, or £1,791 per resident.
Jonathan Carr-West, chief executive of the Local Government Information Unit, described the rising levels of borrowing as “extremely worrying”, likening short-term central government loans to “payday loans for local governments”.
Neighbouring councils gave their own explanations for increases. In Luton, borrowing rose by 5.36 per cent, which finance lead councillor Rob Roche said was part of a “strategic commitment” to long-term regeneration and housing.
In Central Bedfordshire, debt grew by more than 25 per cent, with councillor John Baker pointing to new schools and care homes alongside higher inflation.
The Bedford Conservatives said they would continue to “prioritise investment where affordable and protection of frontline services.”
By John Guinn
Local Democracy Reporter
