Bedford council facing financial crisis according to report
Bedford Borough Council is facing a financial crisis, with a leaked report indicating the council is facing tough decisions and opposition councillors claiming it is “in effect bankrupt”.
A Chartered Institute of Public Finance and Accountancy (CIPFA) Finance and Resilience Review, commissioned in March 2025, highlights a series of financial issues.
Key among them is a projected overspend for the current financial year that could deplete the entire general fund reserve, which the Lib Dems called a “rainy day” fund.
The report, seen by the Local Democracy Reporting Service, said the council “needs a robust, credible strategy to secure short-term and longer-term financial sustainability that shows the council is prepared to act boldly and (where appropriate) make ‘politically unattractive’ decisions”.
It adds: “We believe the council is already in s114 territory.”
Section 114 means a council’s forecast spending exceeds its income, and it cannot meet its financial obligations without drastic measures. Also known as s114, it is a formal notice that freezes all non-essential spending and signals a need for urgent financial recovery.
The council said no decision to order an s144 had been made – and that it was “focused on taking the necessary actions to maintain a balanced budget and protect essential services”.
Councillor Henry Vann, leader of the Liberal Democrat Group, said: “Last week I was told that Bedford Borough Council is ‘in effect bankrupt.’”
He urged the mayor to produce a recovery plan and cancel “wasteful” spending.
The Local Democracy Reporting Service (LDRS) was also told that the council was on the verge of issuing a s114.
But a council spokesperson said: “Like many councils, we continue to face budget pressures in key areas such as temporary accommodation, adult social care, and children’s services, and we are actively working to manage these pressures responsibly.
“It is for the council’s section 151 officer to assess and advise on the council’s overall financial position, including whether the criteria for issuing a Section 114 notice is met.
“We can confirm that no decision has been made to issue a Section 114 notice.
“The council remains focused on taking the necessary actions to maintain a balanced budget and protect essential services for our residents,” they said.
The CIPFA review recommends that the council implements a comprehensive Finance Recovery Plan.
This plan should address capacity within the finance department, strengthen financial controls, maximize income opportunities, and demonstrate a willingness to make “politically unattractive” decisions to secure long-term sustainability.
Conservative group leader, councillor Graeme Coombes said: “Bedford Council [sic] is not bankrupt. This is a staggering attempt by councillor Vann to mislead the public.”
Portfolio holder for finance, councillor Marc Frost added: “We’ve delivered a Stability Plan praised by CIPFA, updated the Medium Term Financial Strategy to 2030, and taken urgent steps to protect frontline services.
“What councillor Vann is offering is nothing but political theatre.”