Labour MPs in Central Bedfordshire constituencies are being urged to do more to reverse the potential £24m impact of proposed government changes to local authority funding.
Central Bedfordshire Council delivered a balanced budget in 2024/25 and is on track to do so in 2025/26, according to a report to its executive.
“For 2026/27 to 2028/29, the government intends to publish a three-year local government settlement and to implement a fair funding method of allocating financial resources across councils,” said the report.
“The impact of that for Central Bedfordshire isn’t known with any certainty. But, working on the assumption that the funding shortfall is £24m, the 2026/27 budget can be balanced with a limited drawdown against reserves.”
Independent Aspley and Woburn cllr John Baker told the executive: “The council has resolved to use considerable amounts of reserves to balance the books, during the last four years.
Disappointment in Labour MPs
“Now, we’re putting forward a revenue budget which allows for £8.5m of replenishment to the reserves,” he said. “That’s a considerable improvement on the position a couple of years ago.
“If it wasn’t for ‘fairer funding’, we’re in a good position. This proposal sets the council tax at five per cent. We’d originally planned for three per cent, a year ago.
“We’ll be bringing the draft budget for consultation in January, once the full impact of the ‘fairer funding’ review is shared with us. It’s very disappointing we’re sitting here in this position that the government simply won’t tell us the truth as to how difficult the situation is.
“Equally, we’re disappointed with some of our local MPs who, despite heavy lobbying, aren’t seeking or securing meetings with a minister to talk about these issues, as we’ve requested.
“There’s still an opportunity for Labour MPs Alistair Strathern, Alex Mayer and Rachel Hopkins to play their part. I can’t fathom why our MPs aren’t taking this seriously enough.”
Council leader and Independent Potton cllr Adam Zerny explained: “We’re in a really unfortunate situation whereby we’re being left with great uncertainty by the government.
“Major local authorities are waiting to be given any degree of certainty and understanding of what their budget will look like.
“We’d expect our local MPs who sit within the government to be asking some fairly serious questions. We’ll wait and see if anything happens on that.”
Reliance on reserves “unsustainable”
Conservative Heath and Reach cllr Mark Versallion suggested the council’s external auditor, KPMG, might be putting the council on notice by saying the reliance on reserves to balance budgets is unsustainable and cannot continue.
“Where in the medium-term financial plan are the radical decisions necessary suggested?” he asked.
Executive member for finance cllr Baker replied: “It’s a statement of fact that reliance on reserves is unsustainable, it’s not one of debate.
“We can’t rely on reserves forever because they’ll run out. This budget without ‘fairer funding’ would be replenishing reserves. We were going in the right direction, but we’re being hindered by government.
“When we get the decision, we’ll need to have another discussion about the ways forward.”
The executive noted the updated medium-term financial plan for 2026/27 to 2029/30 and the draft budget for 2026/27 as a base budget position, excluding the impact of the government’s fair funding review.
By Euan Duncan
Local Democracy Reporter
