4.99% tax rise 'unavoidable' says Bedford council

The council’s formal tax resolution, presented to last night’s Full Council (Wednesday, February 25) confirmed the total planned expenditure of £495.3 million, with income from government grants and other sources amounting to £361.8 million, leaving £133.5 million to be collected locally.

Of that total, £130.89 million relates to the borough council’s own services, excluding parish precepts.

The borough council element of council tax is made up of a 2.99 per cent general increase and a 2 per cent adult social care precept, and was within the government’s referendum limits.

Finance Portfolio Holder councillor Marc Frost said the increase was driven by central government funding rules.

“It’s actually predicated in the funding formula from central government,” he said.

“If we didn’t do the 4.99, then it messes up the entire funding formula and we wouldn’t have got our EFS [Exceptional Financial Support] support.”

“So we had no choice but to do that even though we don’t want to,” he added.

However, opposition councillors disputed that characterisation. Labour’s councillor Sue Oliver said: “You are now proposing the maximum increase allowed, not as a choice, but because you have to.”

Green councillor Lucy Bywater said her party did not “like increases in council tax” and described it as a “regressive and unfair tax”, adding that many residents were already under significant cost-of-living pressure.

She said the impact was partly mitigated by the borough’s 100 per cent council tax discount for the lowest-income households, which councillors voted to retain last year.

Councillor Frost said the financial pressures were largely driven by children’s services placements, adult social care and temporary accommodation costs.

The overall average Band D council tax bill, including borough, police, fire and parish elements, will rise to £2,471.74.

The resolution was approved following a recorded vote, with 20 councillors voting in favour and 24 abstaining.