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Bail out by government a 'dark day' for Bedford

Amy HolmesBedfordshire political reporter
News imageSteve Hubbard/BBC A large Bedford Borough Council entrance sign with "Welcome to Borough Hall", a crest and "welcome" in several languages, all in black lettering. It is hung from a black frame and there are trees behind it, with much leaf-fall on the ground. There are parked cars in a car park beyond the sign.Steve Hubbard/BBC
The government has made £80m available to Bedford Borough Council as emergency financial support

The government's £80m bail out of Bedford Borough Council has been described as a "dark day" for the town.

The Conservative-run authority has been offered emergency financial help to help tackle a multimillion-pound funding shortfall.

Henry Vann, leader of the council's Liberal Democrat group, said it was a "dark day for Bedford Borough's residents and confirmation the mayor has driven the council to bankruptcy and cannot pay its bills".

But Tom Wootton, Bedford's Conservative mayor, said the money would make sure the council's services "carry on", adding that most of it might not be needed.

News imageAmy Holmes/BBC The Mayor of Bedford, Tom Wootton is standing in a wood-panelled room that appears to be an office or meeting space. He is dressed in a dark blue suit jacket over a black sweater, with a white collared shirt and patterned tie. Behind him are wall-mounted building evacuation diagrams and a row of black cushioned chairs with wooden frames.Amy Holmes/BBC
The Mayor of Bedford, Tom Wootton, said he hoped the council would not need to use all the money

Mohammad Yasin, Bedford and Kempston's Labour MP, welcomed the bail out, but said it was not "a blank cheque".

He said it came with "clear expectations the council must improve governance, strengthen financial management and deliver better value for residents".

The cash-strapped council is getting help to stabilise its finances under the government's Exceptional Financial Support (EFS) mechanism.

The local government minister said EFS was "critical" to ensure councils "can balance the books".

Alison McGovern added: "These flexibilities provided to councils will be subject to rigorous conditions, including a complete assessment of the council's financial position."

Cleat Hill explosion

Like all councils, Bedford borough has a legal requirement to deliver a balanced budget by 11 March, which passed at the second attempt last week.

Out of the bail out, £22 million will be used this financial year, including £2m to help cover costs of the Cleat Hill explosion, which killed two people.

Then, in 2026/27, another significant portion could be used to help fund the construction of Wixams railway station.

It was going to have two platforms, but building work was halted when it was decided four platforms were needed because of the Universal theme park being built nearby.

News imageAmy Holmes/BBC Henry Vann in a dark suit and glasses stands indoors against a textured brown wall, with stacked chairs visible in the background.Amy Holmes/BBC
Lib Dem opposition leader Henry Vann is worried that repaying the money will take decades

Vann, who represents the De Parys ward, said: "This is not a gift from the government.

"It is an emergency loan which will have to be paid back for decades to come."

Wootton said he had been "mocked" for comparing the bail out to a "credit card".

"We don't have to use all of it... and hopefully a good part of it won't have to be used," he added.

"We are riding a rocky road and going through tough times, but what this money will do is allow us to plan and make sure the services that Bedford Borough residents use carry on."

Earlier this month, it was announced that government inspectors would be spending three months in Bedford at a cost of £3,400 per day.

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