"This is not a blank cheque" warns MP as Bedford council granted government bailout
Bedford Borough Council has had its multi-million pound government bailout approved – but the town's MP has warned it is not “a blank cheque”.
And he said the cash must come with improved value for taxpayers.
The council’s budget rested on the government granting its application for Exceptional Financial Support (EFS), which allows councils to borrow or use capital receipts to cover day-to-day spending pressures.
Today (February 23), the government announced it will grant £58m for 2026-27 and £22m for 2024-26 to Bedford council to help it balance the books.
According to the government, the “need for councils to apply for this support reflects the worst of an outdated funding system”.
But Bedford and Kempston MP Mohammed Yasin said: “I have personally made the case to the Minister for Local Government, Alison McGovern, about the scale of the challenges facing Bedford, particularly as we prepare for the significant investment associated with the proposed Universal Studios project. Growth of this scale presents huge opportunities for jobs and regeneration, but it also brings increased pressure on local services and infrastructure.
"However, this support is not a blank cheque. It comes alongside the ongoing Best Value inspection and clear expectations that the council must improve governance, strengthen financial management and deliver better value for residents. The inspection must mark a turning point, to rebuild public confidence, strengthen accountability and put the council on a sustainable footing.”
He added: “Demand for statutory services continues to rise, particularly in adult social care, SEND provision and housing support. Bedford has also faced exceptional and unpredictable costs, including those arising from the Cleat Hill explosion, which placed further pressure on already stretched resources.
“Bedford deserves a council that is financially responsible, transparent and focused on delivering high-quality services. I will continue working with Ministers and local leaders to ensure this support helps put Bedford Borough back on a stable and sustainable path for the long term.”
Bedford Borough Council’s budget passed by just 16 votes to 11, with 16 abstentions.
Finance portfolio holder councillor Marc Frost (Conservative) admitted council was operating in “extremely challenging financial circumstances” and could not balance its budget without government support.
However, the Labour Group abstained from the budget vote saying it relied “too heavily on short-term measures, delays the hardest decisions, and leaves too many services under strain with little certainty about the future.”
The leader of the Liberal Democrat Group, councillor Henry Vann said he was “concerned that this budget is planning to fail”, adding it was “storing up pain for the future”, with difficult decisions being “loaded on to current and future taxpayers”.
Mayor Tom Wootton has previously admitted that the council is on a ‘financial cliff edge’ and that it faced a “grave financial situation” driven by rising demand in adult social care, children’s services and homelessness, inflationary pressures, reduced government funding and the “collective decision over the past decade” not to raise council tax by the full allowable amount.
Meanwhile, a government inspector and two assistant inspectors have been called in to carry out a best value inspection of the council and review its improvement journey as it tackles its financial challenges.