Bedford council debt peaked at £130 million last year - but is now closer to £90 million
Bedford Borough Council’s borrowing peaked at £130 million last year, breaching four of its own Treasury indicators and prompting concerns over the level of debt, according to a report presented to the executive.
The Treasury Management Annual Report 2024/25, discussed by the executive on Wednesday (October 15), showed total external debt rose from £88.4 million in 2023/24 to £129.95 million by March 31, 2025.
The portfolio holder for Finance, councillor Marc Frost (Conservative, Wixams and Wilstead) said: “[This is] reflecting the timing of capital programme funding and short-term borrowing to manage cash flow pressures.
“There are a couple of large debtors since repaid and debt today is closer to the £90 million mark.
“Importantly, no new long-term loans were taken out.
“Four of the seven potential maturity indicators were technically breached primarily due to short-term borrowing mix, but this was a conscientious and prudent response to market conditions rather than a failure of control,” he said.
On the investment side, the council achieved an average return of 5.24 per cent, above the sector average, on £38.6 million of year-end investments. Its pooled funds showed an unrealised loss of £2.657 million, which is covered by statutory accounting rules until 2029.
“While the headline numbers are significant, the message is clear, we’re maintaining a disciplined approach to managing debt, liquidity, and investment risk,” councillor Frost said.
The Treasury Management report will now go to full council for approval.