Council launches budget consultation as £17 million government funding shortfall confirmed
Wednesday, 7 January 2026
Central Bedfordshire Council has today (7 January 2026) launched its public budget consultation for 2026/27.
Residents, businesses and community organisations can have their say on how the council should respond to a £17 million shortfall in government funding.
Recent changes made by the government will result in Central Bedfordshire Council receiving significantly less funding than required to meet rising costs and demand for services. This comes despite increasing pressures from inflation and growing demand for adult and children’s social care.
In 2026/27, the council plans to spend £328 million delivering hundreds of essential local services, many of which are award-winning or independently rated as good. In addition, £129 million is planned for maintaining and building vital infrastructure such as schools, roads and public facilities.
However, due to changes to national funding made by the government, Central Bedfordshire Council will receive £17 million less than needed in the year ahead. Over the next 3 years, this funding gap rises to £33 million.
Councils fund local services through a combination of Council Tax, business rates and government funding. While Central Bedfordshire Council has a strong track record of prudent financial management and has balanced its budget in recent years, these latest changes mean further difficult decisions are unavoidable.
Over the past 2 years, the council has already reduced its workforce by more than 150 posts and redesigned services to operate more efficiently. Despite this, demand for social care continues to rise. In 2026/27 alone, adult social care and children’s services costs are expected to increase by £7.4 million.
Councillor Adam Zerny, Leader of the Council said:
Before the government funding changes were announced, two years of prudent financial control meant the council was forecasting a positive financial position, allowing us to start putting money back into reserves and limit Council Tax increases to 3%, in line with inflation.
We know how important it is to residents that they get value for money from the Council Tax they pay, and that has been our main focus, which we were on track to achieve.
This huge government funding cut forces the Council raise Council Tax to the maximum 5%. Many other local authorities have been hit equally hard, and we’ll continue to argue a case to the Government, on behalf of residents.
As a result, the draft budget proposes a combination of measures to balance the council’s finances, including:
- Further reductions in council costs, including potential staff reductions
- A review of grants to voluntary and community organisations
- Increases to some fees and charges
- Changes to some services, such as reduced opening hours and maintenance schedules
The budget proposals are now open for public consultation, and residents are encouraged to review the plans and share their views before final decisions are made.
The budget consultation runs from 7 January 2026 to 3 February 2026.