‘A Devastating Blow For Local Services’: 29% Cut in Council’s Main Grant in One Year

The Government has announced a 29% cut in the main grant for Bedford Borough Council, in a move described by Mayor Dave Hodgson as a 'devastating blow for local services.'

Yesterday's announcement of the Local Government Finance Settlement on the final day of Parliament sitting this year saw Bedford Borough's Core Government funding cut from £30.1 million down to £21.4 million for 2016/17.

The reduction is over £3 million greater than the forecast cuts the Council had been working on, based on previous government information. It confirms that the reduction and even the removal altogether of important local services will be unavoidable.

Commenting, Mayor Dave Hodgson said: "This funding announcement is a devastating blow for local services. We were already forecasting massive cuts which would make the reduction or loss of services unavoidable. But this is even worse.'

"After years of fighting successfully to save services lost elsewhere, we are already having to propose cuts we don't want to make. These further cuts upon already huge cuts are simply leaving us with nowhere to go."

Facts and Figures:

• The Council's Revenue Support Grant in 2016/17 will be £21.419 million.
• Bedford Borough Council has already made £81 million of savings since 2010, focused away from frontline services.
• These include major savings in office costs, reducing the number of council office bases from 17 to 1, and a huge reduction in senior management costs.
• With these efficiencies already made, the scope for further savings away from the front line in the face of further vast funding reductions is disappearing.
• While funding is being cut, demographic change means the demand for Council services is rising sharply. For example, the number of residents over the age of 85 in the Borough will have risen by another third between 2014 and 2021.
• This year's local government finance settlement saw the government change the method for the distribution of funds in a way which hits Bedford Borough harder.