"Let’s not sugarcoat it, the council is bankrupt" warns Bedford councillor as it faces £13.6million budget shortfall
Bedford Borough Council is facing a £13.6 million overspend this year, with councillors warning the authority is facing being effectively unable to balance its budgets without Government intervention.
A financial report presented to last night’s Full Council (Wednesday, October 8) showed that spiralling costs in children’s social care, adult care packages and temporary accommodation are driving a worsening budget crisis.
Unless the council can close the gap by March, it will have to seek emergency financial support from the Government.
The forecast overspend stood at £13.569 million at the end of June.
The report said the biggest pressure is in Children’s Services, which are expected to exceed their budget by £5.6 million, largely due to rising numbers of looked-after children and expensive placements for those with complex needs.
Adult Services are forecast to overspend by £2.3 million, while housing and temporary accommodation costs are expected to add £2.6 million.
Councillors on the Budget and Corporate Services Overview and Scrutiny Committee also raised alarm over the scale of the council’s capital borrowing.
The Executive had recommended borrowing £86 million this year to fund the capital programme, a proposal later withdrawn following scrutiny concerns.
However, opposition councillors said overall borrowing is still projected to rise from £60 million to £179 million by 2028, with interest payments consuming millions of pounds each year.
Councillor Michael Headley (Lib Dem, Putnoe), chair of the budget committee, said: “Let’s not sugarcoat it, the council is bankrupt.”
The council has already imposed emergency spending controls, requiring senior approval for all spending over £500.
Other measures being taken to close the gap include trimming the capital programme to save £0.6 million a year, reviewing fees and charges early, switching off some discretionary services, and potentially introducing new or higher charges, including for services currently provided free.
Councillors criticised the administration for keeping details of in-year cuts “hidden”, saying communities were discovering reductions in services only after they had happened.
The capital programme has been cut by £35 million, with schemes such as Sharnbrook Primary expansion, Robinson Pool refurbishment and Wixams Station car park either removed or under consideration.
Meanwhile, the council is grappling with £21 million in unpaid debts, nearly half of which have been outstanding for more than 91 days. Around £8.9 million of this relates to adult social care charges.
The administration says it is working on a financial “Stability Plan” to restore the council’s finances, but acknowledged that further decisions affecting front-line services will be needed.
If the budget cannot be balanced, the council will have to apply for Exceptional Financial Support, which could lead to Government intervention, higher council tax bills and deeper service cuts.