Central Bedfordshire Council has expressed concerns regarding the recent announcement of additional funding from the government, which is part of a larger £78 billion funding initiative aimed at supporting local authorities over the next three years. While the funding is intended to enhance resources for local services such as libraries, youth facilities, and community hubs, the council argues that the figures do not accurately reflect its financial situation.
The government’s calculations assume an average council tax of £2,060 per Band D equivalent property, based on a 100% collection rate. However, the council’s expected Band D figure for the financial year 2026/27 is likely to be around £1,931, which represents a disparity of £129 per property.
Funding Reduction Concerns
Cllr John Baker, the Executive Member for Highways and Finance, highlighted the challenges ahead, stating, “The council faces a reduction in funding from the government of £17 million in the coming year.” He emphasized the need for local Members of Parliament to advocate for the council in Westminster to mitigate potential impacts on essential public services.
The council is expected to raise council tax by 5% next year, which could lead to increased fees and possible delays in planned projects. Cllr Baker noted, “This is a well-run, prudent council which has made significant reductions in spending and staff in recent years.” He urged local MPs to recognize their role in addressing these funding cuts, asserting that the issue stems from decisions made in Westminster, not in Bedfordshire.
According to the Ministry of Housing, Communities and Local Government (MHCLG), councils will experience a 23% increase in their core spending power compared to the previous year by the conclusion of this multi-year settlement. MP Alex Mayer, representing Dunstable and Leighton Buzzard, stated that this funding will allow the council’s core spending power to rise by 16.6%, reaching £342.7 million by 2029.
Future Planning and Challenges
Mayer acknowledged the ongoing pressures faced by councils, emphasizing that the settlement recognizes the need for sustained support. “You can’t fix decades of underfunding overnight,” he noted. He also pointed out that the multi-year funding agreement provides the council with necessary tools to plan effectively and safeguard crucial services.
Despite the funding increase, Mayer identified a significant barrier, stating, “Until Central Bedfordshire stops being the blocker on regional devolution and embraces having a mayor, the area will miss out on the additional funding, powers, and long-term investment that come with it.”
Secretary of State Steve Reed remarked on the potential for positive change, saying, “This is a chance to turn the page on a decade of cuts, and for local leaders to invest in getting back what has been lost.” Reed assured that every community would be equipped with the funding needed to thrive.
The government has also committed to assisting councils as they transition to a new, fairer funding system for council tax. Local authorities are required to manage their budgets responsibly, with council tax increases capped at 3% annually, along with an additional 2% allowed specifically for adult social care. In exceptional cases, councils may apply for permission to exceed these limits, but only if their residents do not already pay more than the average.
As Central Bedfordshire Council navigates these financial challenges, the emphasis remains on ensuring that local services continue to meet the needs of the community while advocating for adequate funding and support from the government.
