Bedford Borough’s elected mayor, Tom Wootton, has brought in local government specialist Theresa Grant OBE to help review the council’s finances, as pressure mounts due to the growing demand for services and rising costs.
The move comes as the Mayor looks to fend off criticisms that he is not taking proactive steps to secure the council’s long-term financial stability, amid concerns over increasing demand in adult social care, temporary accommodation and homelessness.
He’s also been criticised in recent months for “depleting” council reserves to fund projects that have yet to show any return on investment.
Theresa Grant OBE, who has held Chief Executive roles at Trafford Borough Council and more recently worked with Liverpool City Council, has built a national reputation for turning around councils facing significant challenges.
She was appointed to lead Northamptonshire County Council when it became the first local authority in 20 years to issue a Section 114 notice in 2018, essentially declaring itself bankrupt.
In an interview with Local Government Chronicle, she described the council at that time as having “a 20th-century mindset for a 21st-century challenge” and said culture change and strong leadership were vital in restoring financial control.
In Bedford, she has been invited to provide independent advice to help the Mayor and his executive assess current finances and explore how the Council can build future resilience, ahead of the Mayor asking the Government to increase support for Bedford Borough.
Mayor Wootton (Conservative) said he aims to end “the repetitive cycle of cuts to services and micromanagement of budgets” and instead focus on delivering value for money and directing resources “to where they are most valuable and most needed”.
Spending power
Responding to the wider financial challenges facing councils last November, Minister of State for Local Government Jim McMahon acknowledged the scale of the problem.
He said the government is “under no illusion about the scale of the issues facing local government” and the growing cost of services.
Describing the situation as a consequence of “a decade of cuts and fiscal mismanagement inflicted by the last government,” made worse by inflation and slow economic growth.
He said ministers are taking “immediate action” to support councils, with £4 billion in additional funding for local government services.
That included £1.3 billion delivered through the Local Government Finance Settlement, alongside targeted support for SEND, homelessness, and road maintenance.
That being said, some say that’s still not enough.
Responding to the Local Government Finance Settlement in February, Cllr Louise Gittins, Chair of the Local Government Association, said that more cash is still needed.
“Extra money for councils next year, including compensation for employer national insurance contributions increases, will help meet some of the cost and demand pressures they face but still falls short of what is desperately needed to cover them all,” she said.
“This financial year therefore remains extremely challenging for councils of all types who now face having to increase council tax bills to bring in desperately needed funding next year yet could still be forced to make further cuts to services.”
Read: Bedford Borough council tax rise agreed
However, while it may still be lower than a decade ago, analysis by the Institute for Fiscal Studies (IFS) also suggests that core spending power for English councils overall has risen since 2020, after falling sharply during the first half of the 2010s.
This, the Mayor says, along with demand-led pressures that continue to grow, especially in social care, means that planning for the long-term is essential.
Children’s Services, the Mayor’s office says, is bucking the trend, having reportedly come in under budget due to what they describe as “robust financial management and innovative service delivery”.
Conservative Group Leader Cllr Graeme Coombes (Wixams and Wilstead) added: “Prudent management means taking action now, today, before a tipping point is reached – not continuing as the Council has for years, waiting until trouble hits.”
Theresa Grant is expected to begin working with the Council immediately, providing an external assessment and identifying opportunities for reform.
