Central Beds Council hits back as government announces 'extra' funding

The money is part of a new £78bn funding pot which sets out local government finances for the next three years giving English councils more resources to bring back libraries, youth services and community hubs.

But the council says the numbers don’t reflect the true situation. For example, they say CSP makes a national assumption that average council tax is £2,060 per Band D equivalent property (at a 100% collection rate). But the council’s actual Band D for 2026/27 (subject to a council decision in February 2026) is likely to be £1,931, a difference of £129 per property.

Cllr John Baker, Executive Member for Highways and Finance said: “The council faces a reduction in funding from the government, of £17million in the year to come.

“A clear message has been given to local MPs that we expect them to represent us at Westminster, to ensure that this damaging cut to our funding doesn't come to pass.

“The impact on public services in the year to come could be significant. Next year, the council must increase Council Tax by 5%. It will likely mean council fees increase. And it might mean that we cannot progress with planned projects.

“This is a well run, prudent council which has made significant reductions in spend and staff, in recent years.

“Local government MPs must recognise that their failure to represent us has resulted in this funding cut, but there is still time for them to take our message to Government. The problem we face was made in Westminster, not Bedfordshire."

According to the Ministry of Housing, Communities and Local Government (MHCLG), councils will see an ‘increase of 23 per cent in their core spending power’ compared to 2024-25 by the end of the multi-year settlement.

MP Alex Mayer claimed this means the council's core spending power will rise by 16.6 per cent, up to £342.7 million by 2029.

The MP for Dunstable and Leighton Buzzard, said: “Councils are under real pressure, and this settlement recognises that reality. You can’t fix decades of underfunding overnight. But thanks to this Government, Central Bedfordshire now has a 16 per cent increase in spending power. Plus, importantly, it is a multi-year funding deal. So the council now has the tools it needs to plan ahead and protect essential services.

"However, there remains an elephant in the room. Until Central Bedfordshire stops being the blocker on regional devolution and embraces having a mayor, the area will miss out on the additional funding, powers and long-term investment that come with it.”

Secretary of State Steve Reed said: "This is a chance to turn the page on a decade of cuts, and for local leaders to invest in getting back what has been lost – to bring back libraries, youth services, clean streets, and community hubs.

“Today we’re making sure every community has the funding they need to succeed.”

The government has also stated it will continue supporting councils as they move to the new, fairer funding system for council tax.

All councils must still manage their budgets responsibly, and council tax rises will be capped at 3 per cent per year with an extra 2 per cent allowed for adult social care. It will be up to local leaders to raise that council tax.

In exceptional cases, councils can apply to raise taxes above this limit – but only if their residents don’t already pay more than average.