Concerns “record council tax rises” on the way to bridge Bedford Borough Council’s budget gaps

Councillors have reacted strongly to the analysis of Bedford Borough Council’s finances that suggests “record council tax rises” could be on the way for Bedfordians to cover a predicted budget deficit of £27.6million by 2026/27.

An investigation by the BBC’s Shared Data Unit, shared with the Bedford Independent, revealed the financial shortfalls of councils across the UK could now put the well-being of children and young people at risk and massive council tax rises could be on the way to cover the gap.

Collectively, local authorities across the UK have approved more than £3bn in savings proposals for this financial year (2024/2025) alone. But they will still face a collective funding shortfall of more than £5.7bn by 2026-27.

In Bedford, the budget gap by that time is estimated to be in the region of £27.6million, which works out to around £145 per person living in the Borough.

Reactions to the budget deficit gathered by the BBC have been varied, with many concerned cuts to vital services may now be on the cards.

Amid significant cuts to social care, housing, education and children’s services budgets, the BBC’s analysis of recent savings proposals also uncovered examples of councils trying to save money from all angles.

This included approving the removal of flagpoles; switching coffee suppliers; introducing dynamic theatre pricing; cutting long service awards for staff; removing coastal lifeguards and ending asbestos collection from households.

Children and vulnerable at risk

The Local Government Information Unit (LGIU) said councils had carried out “all of the easy cuts” to non-statutory services years ago, with children’s and adult social care services now forced to bear the brunt of the savings drive.

Its chief executive Dr Jonathan Carr-West said the bleak financial picture is compounded by the growing demand for, and the increasing cost of, homelessness and social care services.

Meanwhile, Children’s Commissioner Dame Rachel de Souza said councils are facing “immense financial pressure” and that many of the savings proposals introduced by local authorities will “disproportionately impact children who rely on the state for protection and a stable home environment”.

Lynn Perry, chief executive of children’s charity Barnardo’s, added, “We know that councils across the country are having to make savings in their budgets – and are being forced to prioritise services which help children and families in crisis rather than prioritising earlier help.

“But whilst scaling back children’s services might seem like a way to balance budgets, it ultimately has a lifetime cost for a generation of children.”  

There are also concerns the budgetary crisis in local government has also “limited the lives of millions of disabled people”.

Mikey Erhardt, from Disability Rights UK, said the lack of money needed to deliver council services was plunging many into “hardship, isolation, distress and deepening poverty”.

“The underfunding of social care in particular goes far beyond the numbers on a Whitehall spreadsheet – it goes to the very core of how we value the lives of disabled citizens.

“Millions of us, young and old, are going without the care and support we need.”

Paul Whiteman, general secretary of the school leaders’ union NAHT, echoed these concerns for education in general and for those with SEND.

He said the findings “lay bare the tough reality many schools and families are facing” and said allowing the situation to continue would undermine the education system’s ability to support children.

“Cuts to vital services such as SEN transport, school librarians, and mental health support are not just numbers on a spreadsheet – they are essential services that children depend on for their learning and well-being,” he added.

Pressures on Bedford

Locally, opposition councillors have been quick to lay blame on the council’s current leadership.

Cllr Henry Vann, leader of Bedford Borough Liberal Democrats, said: “Make no mistake, the financial state of the council, which is bad and set to get worse, is 100% the responsibility of the Conservative Mayor and his cabinet.

“It is decisions made locally that have brought us to this point and yet there is still talk of borrowing to fund his new leisure facility that some are calling a vanity project. 13 years of sound finances in difficult times trashed in less than two years of Conservative control.

“If they do not get a grip locally on their mounting debt, residents will face a triple threat of dramatic cuts to vital services, soaring council tax rises and increased charges.

Read: Borough Conservatives accused of putting council at risk by “burning through” savings

Cllr Vann also highlighted recent borrowing by Bedford Borough Council that he says is adding to the financial shortfall.

“This year alone £1.4 million more is being spent on interest payments than planned – £1.4 million that could have been spent on protecting services. Local Government needs more funding, but disastrous local decisions don’t help us make the case,” he said.

Bedford’s Labour Group have also weighed in on the crisis.

“The previous cross-party administration of the Council had an envious record of protecting front-line services and keeping Council Tax rises down: particularly important through the cost-of-living crisis,” said Cllr Carl Meader, leader of Bedford Borough Labour Group.

“We have seen the Labour Government having to pick up the pieces nationally from Conservative failures and something similar seems to be happening locally here in Bedford Borough.

“The Labour Group are deeply concerned about the state of the Council’s finances and the risk this poses to services and staff. We need to see more action, more urgently, if we are to avoid a complete collapse of council services.

“Residents deserve better than this and that is why there was a strong cross-party majority that rejected the Conservative’s financial plans at last week’s council meetings.”

Read: Bedford Borough Council seeing a “disturbing” increase in debt

“Domino effect”

However, Cllr Ben Foley (Green/Greyfriars) said the Lid Dem/Labour coalition also has their part to play in the mess.

Speaking to the Bedford Independent, Cllr Foley said: “Bedford has been caught in a pincer between the previous Tory Government intentionally under-funding local councils and our previous Lib Dem/Labour coalition that hoped to win votes at the last local elections by not putting council tax up by as much as the Government were expecting them to.

“Locally, this isn’t helped by a Conservative council executive that is determined to spend hundreds of thousands of council taxpayers’ money on subsidised ‘free’ car parking or expensive road traffic schemes supposedly to ‘reduce congestion’ or even a ‘leisure village’ rather than services that are vital for vulnerable local people, like care for elderly people.

“What’s worse, any cuts to services for vulnerable people that come risk creating a domino effect adding costs to council and other services down the line.

“So, any cuts proposed will not just be financial decisions but decisions that shape the lives and well-being of vulnerable Bedfordians.”

Bedford’s Green councillors also highlighted that more needs to be done to make sure money isn’t being wasted on the delivery of services, by carrying out better procurement exercises when outsourcing council work.

A spokesperson for Bedford’s Green Party added, “Greedy businesses have been trying to exploit us by over-charging the council, whether for agency staff, external fostering agencies or for emergency housing for homeless people.

“The combined effect has resulted in a situation where it is almost impossible for a council to do everything it is required to do. There is so much temptation on councils to cut services below the legally required level.”

We asked Bedford Borough Council for comment on the predictions and what this could mean for Bedford taxpayers.

A Bedford Borough spokesperson said: “Like many local authorities, Bedford is experiencing increasing demand in services for vulnerable people, particularly around temporary accommodation and adult social care at a time where funding for public services is stretched.

“The Council is, as far as is possible protecting frontline services to residents, whilst also delivering on the Mayor’s long-term plans.”

Multi-year funding settlements

The Labour government is now being asked what they could be doing to reduce the impact on local people and help protect vital council services.

Local Government Association chair, cllr Louise Gittins, said: “The risk of financial failure across local government is potentially becoming systemic.

“This is clearly demonstrated by the fact that so many councils are reliant on Exceptional Financial Support from the Government in order to secure their financial sustainability for 2024/25. This is unprecedented.

“Despite councils’ best efforts, this is increasingly affecting the scale, range and quality of council services provided to local residents.

“The Government needs to take action in the Autumn Budget to provide councils with financial stability.

“Immediate financial support and long-term funding reform and certainty – alongside a focus on preventative spending – are essential to protect services and enable councils to fully contribute to the Government’s agenda.”

In response to the BBC findings, Local Government Minister Jim McMahon said they will be working “hand in hand” with councils to provide what he says will “provide long-term stability”.

“Councils of all political parties and none will be facing significant challenges as demand for critical services rockets in adult social care, children’s services and temporary accommodation,” he said.

He added, “At almost every turn the previous government oversaw systemic failures which have led to higher costs and in many cases worse outcomes.

“As a former council leader myself and from speaking to local leaders, I know councils are doing everything they can to keep supporting communities by running the vital services so many rely on and we want to support them as much as possible.

“This government inherited a crisis in local government and there’s no shying away from the scale.

“These deep-rooted problems won’t be fixed overnight, but we are committed to fixing the foundations, reforming and rebuilding the sector from the ground up to begin to get ahead of the underlying pressures for the benefit of councils and local communities, but that will take time.

“We will work hand-in-hand with councils by moving towards multi-year funding settlements to provide long-term stability, ending competitive bidding processes, and ensure the sector gets back on its feet.”