Bedford Borough Council is facing what councillors have described as a “deepening financial emergency”, with reports presented this week revealing both a £13.6 million overspend this year and a £58.6 million funding gap by 2030.
The figures were discussed at the Full Council meeting on Wednesday, 8 October, where members were warned that without Government support, the authority could soon struggle to balance its books.
In-year pressures
A financial report covering the first quarter of 2025/26 showed that spiralling costs in children’s social care, adult care packages and temporary accommodation are driving the worsening situation.
Read: Bedford Borough Council told to tighten spending and boost income to avoid Section 114 notice
Children’s Services are expected to exceed their budget by £5.6 million, mainly due to increasing numbers of looked-after children and complex care placements.
Adult Services are forecast to overspend by £2.3 million, while housing and temporary accommodation costs are projected to add a further £2.6 million.
If the £13.6 million gap cannot be closed by March 2026, the council will have to apply for Exceptional Financial Support from the Government. This measure could result in Whitehall intervention, higher council tax, and further cuts to local services.
To limit spending, the council has already introduced emergency financial controls, meaning any purchase or payment over £500 must be signed off by senior management.
Capital spending has also been reduced by £35 million, with several projects, including Sharnbrook Primary expansion, Robinson Pool refurbishment and Wixams Station car park, either removed or under review.
The administration says it is developing a financial “Stability Plan” to restore its finances, though further decisions affecting frontline services are expected.
Other measures being taken to close the gap include trimming the capital programme to save £0.6 million a year, reviewing fees and charges early, switching off some discretionary services, and potentially introducing new or higher charges, including for services currently provided free.
Councillors criticised the administration for keeping details of in-year cuts “hidden”, saying communities were discovering reductions in services only after they had happened.
Meanwhile, the council is grappling with £21 million in unpaid debts, nearly half of which have been outstanding for more than 91 days. Around £8.9 million of this relates to adult social care charges.
Long-term outlook
Read: Mayor pauses four-hour free parking scheme amid Bedford Borough Council financial pressures
Alongside the overspend report, councillors also approved an updated Medium-Term Financial Strategy (MTFS), which sets out how the council plans to fund local services over the next four years.
That report showed that the projected funding gap for 2026/27 has almost doubled since the summer — from £17 million to £32.5 million — contributing to the £58.6 million shortfall forecast by the end of the decade.
Finance officers say the pressures stem from a combination of national and local factors, including:
- A £10 million annual reduction in business rates income is expected from a Government funding reset in 2026/27
- Rising demand for adult social care, children’s services and temporary accommodation
- Uncertainty over the outcome of the Government’s Fair Funding 2.0 review, which will change how councils receive grants
Councillors backed an amendment to the MTFS calling for a review of recent spending increases, closer scrutiny of large building projects to reduce borrowing costs, and rebuilding reserves to a more sustainable level.
Borrowing concerns
Opposition members have also raised concerns about the council’s growing capital borrowing, which is expected to rise from £60 million to £179 million by 2028, with millions spent each year on interest payments.
Cllr Michael Headley (Liberal Democrat, Putnoe), chair of the Budget and Corporate Services Overview and Scrutiny Committee, said: “Let’s not sugarcoat it — the council is bankrupt.”
The Executive had initially recommended borrowing £86 million this year to fund capital projects, but the proposal was withdrawn after scrutiny concerns.
Cllr Marc Frost (Conservative, Wixams and Wilstead), Portfolio Holder for Finance, said the MTFS update was about “setting the direction” and “rebuilding reserves, reducing borrowing, and strengthening our position.”
He added that the council’s finances were “under severe pressure,” and that emergency measures were needed to protect statutory services.
Mayor: “We have to batten down the hatches”
Speaking separately to the Bedford Independent at the relaunch of the Eagle Brewery, following a £70 million investment by Damm Brewery, Mayor Tom Wootton (Conservative) said: “We have got to batten down the hatches.
“Bedford is a small council with lots of big bills, and we don’t have a choice but to make difficult decisions. We can’t gatekeep; we can’t say no adult services or no more children’s services. We have to do what we are legally required to do.
“But things are going to change. I’ve always said Bedford’s best days are yet to come, and I’m absolutely determined that’s going to be the case.”
The council says a new Improvement Plan will be published by January 2026, combining existing efficiency and accountability programmes into a single framework.
If the council cannot stabilise its finances before the end of the financial year, it may have to apply for exceptional Government support.
By John Guinn, Local Democracy Reporter
and Paul Hutchinson, Bedford Independent
