£8.5million loans for Office of Bedfordshire Police and Crime Commissioner to fund 'crucial' spending
Bedfordshire’s Office of the Police and Crime Commissioner (OPCC) has borrowed £8.5 million since December, according to data published by the Public Works Loans Board (PWLB).
OPCC documents presented to the Bedfordshire Police and Crime Panel said the £4.5 million borrowed in December 2024 was to fund “crucial” capital expenditures, refinance existing debt, and cover prior year costs.
The report said the loan was for several purposes, including £2.4 million for planned borrowing necessary to support the 2024/25 capital programme.
The estimated total financing required for capital expenditure in 2024/25 was £4.433 million.
£0.320 million was for loan re-financing, specifically relating to a loan that matured in April 2024.
£1.8 million addressed prior year capital costs that had previously been financed using internal cashflows, a method sometimes referred to as “internal borrowing”.
An OPCC spokesperson said: “Each year the [police and crime commissioner] PCC sets the budget, in consultation with the chief constable and [chief financial officer] CFO, and makes decisions on capital expenditure on the advice of the CFO to ensure value for money.
“Capital expenditure is spread over several years to secure the best terms and enable investment in critical infrastructure,” they said.
The OPCC then borrowed a further £4 million in March. Its spokesperson explained: “The £4 million borrowed in March 2025 was required to fund the 2024/25 capital programme, as well as cover the delay in the sale proceeds of Greyfriars Police Station.
“On that basis, it was only borrowed for 12 months, to allow the sale to go through, but also to consider re-financing of existing borrowing as interest rates are expected to fall in the next 12 months.
“The interest rate for the 12-month loan was 4.83 per cent. This decision was taken prior to the current PCC taking up office,” they said.
“The Police Capital Programme is determined by the PCC on the advice of the CFO. This is reviewed regularly by the PCC.
“The programme and decisions are published on the PCC’s website and in the minutes of the Performance and Governance Board, which are also publicly available.”
The previous PCC’s 2024/25 Revenue Budget and Council Tax Setting Report said borrowing from the PWLB offers more “favourable” interest rates compared to other sources.