£17m government cuts to Central Bedfordshire Council set to have 'significant impact on public services'
A revised funding reduction of about £17m for Central Bedfordshire Council in 2026/27 could have “a significant impact on public services”, its finance portfolio holder has warned.
The government is rearranging local government finance with its fair funding review, which initially left CBC fearing a reduction in the next financial year of up to £24m.
Figures to be published by the Ministry of Housing, Communities and Local Government (MHCLG) will cover the funding settlement for the next three years.
CBC’s executive member for finance and Independent Aspley and Woburn councillor John Baker said in an email to Central Bedfordshire councillors on Friday, December 19: “Based on additional data from MHCLG, I can now give an insight into our provisional budget settlement from the government.
“I would stress caution, as the way in which this settlement was communicated is haphazard and council officers are working through the finer details. A £17m shortfall is less then the Pixel model would have suggested by £7m, but still an absolutely enormous cut to our funding.
“Both 2027/28 and 2028/29 are a massive challenge, with potential shortfalls of £28m and £40m respectively. This is a three-year settlement, so those figures are now fixed.
“A seven per cent year-on-year council tax growth has been assumed by MHCLG that we’ll increase council tax by five (4.99) per cent in 2026/27, 2027/28 and 2028/29, while our council tax base (number of band D properties) will increase by two per cent a year.
“We’re aware a local MP is quoting the government’s comparative spending power assessment for Central Bedfordshire as £342.7m and goes on to suggest ways in which we can spend this ‘extra funding’.
“That figure is based on notional figures and doesn’t reflect the reality on the ground. Our funding for 2026/27 is £328.2m (using our billed council tax expectations), compared to the government published core spending power figure.
“The MP’s calculation of £342.7m is £14.5m out, based on our draft budget and planned spend for 2026/27. Further work will take place to find more savings.”
Labour MP for Dunstable and Leighton Buzzard Alex Mayer had said CBC’s core spending power for essential local services, including bin collections, adult social care and libraries, will rise by 16.6 per cent. This would take the local authority to £342.7m by 2029, she added.
In a statement to the local democracy reporting service, councillor Baker explained: “A clear message has been given to local MPs that we expect them to represent us at Westminster to ensure this damaging cut to our funding doesn’t occur.
“The impact on public services next year could be significant. The council must increase council tax by five per cent for 2026/27. That will likely mean council fees increase, while planned projects may not progress.
“This is a well-run and prudent council, which has made significant reductions in spending and staff in recent years. Alex Mayer and Labour Luton South and South Bedfordshire MP Rachel Hopkins have been celebrating this new funding model.
“Local MPs in government must recognise there’s still time for them to take our message to the government. The problem we face was made in Westminster, not Bedfordshire.”