When Bedford Borough Council unveiled a council tax increase of 4.99% for the 2025‑2026 financial year on September 30, 2025, the move was framed as a way to keep two public car parks free for residents – a decision that immediately set off anger among local traders.
The announcement, reported by Bedford Today at 12:57 BST, coincided with a sweeping set of parking reforms across the county. The reforms, driven jointly by Bedford Borough Council and Central Bedfordshire Council, will see on‑street pay‑and‑display meters operating seven days a week from 10:00 to 18:00, with a strict four‑hour stay limit.
Why the tax hike matters now
Council leader Sarah Jones, Leader of Bedford Borough Council told reporters, “We’re facing a funding gap for essential services, and the modest tax rise allows us to protect free parking for residents while covering the rising costs of enforcement.” The twist is that the extra revenue won’t just fund the free spots; it will also underwrite a raft of efficiency measures, from LED street‑light upgrades expected to save £146,000 a year to a £200,000 cut in customer‑service costs through new online platforms.
But wait – the savings come at a price for businesses. Shop owners along the bustling High Street reported a sudden drop in foot traffic after the new parking fees were introduced in early October. “Customers used to linger for a coffee after work,” said Tom Hart, owner of a local café, “now they’re racing to get back to their cars before the four‑hour limit hits.”
Parking policy overhaul: the details
Central Bedfordshire Council has rolled out a detailed budget proposal for 2024‑2025 that expands pay‑and‑display schemes into residential zones. The council plans to move all public car parks to cash‑less payment only, effectively ending the ability to drop coins into machines – a change that some senior citizens find bewildering.
Meanwhile, the number of free spaces in the two public car parks that previously offered unlimited parking will be cut in half. The council argues this will “encourage turnover and make spaces more accessible for shoppers,” but critics say it merely nudges drivers toward private operators with higher fees.
Financially, the councils are targeting specific cost‑recovery numbers: a £400,000 reduction in reimbursements to bus operators, a £70,000 saving by scrapping free caddy liners for food‑waste bins, and a projected £146,000 annual cut from LED lighting upgrades. Combined, these measures aim to offset the £5.3 million shortfall projected for the upcoming fiscal year.
Reactions from the business community
Local merchants formed a coalition called “Bedford Business United” to lobby against the new fees. In a letter to both councils, the group highlighted a 12% drop in evening sales at three town‑centre retailers since the parking changes took effect. “We’re not opposed to paying our fair share,” said coalition spokesperson Maya Patel, “but the blanket tax rise feels like a back‑door way to fund free parking that benefits a narrow slice of residents.”
On the other side, resident groups such as “Free Parking for Families” have praised the move, arguing that without the subsidy, many households would lose affordable parking near schools and community centres. The group’s chair, Mark Whitfield, noted, “For families with two cars, the cost of parking can be a hidden burden. Keeping two lots free is a tangible benefit.”
What the numbers really say
- Council tax rise: 4.99% for 2025‑2026, translating to an average £42 increase for a Band D property.
- Parking fee schedule: £1.20 per hour, capped at four hours, seven days a week.
- Projected savings: £400,000 from bus reimbursements, £200,000 from digital service upgrades, £146,000 from LED lighting, £70,000 from waste‑bag elimination.
- Free parking spaces reduced by 50% in two public car parks, affecting roughly 1,200 annual parking days.
- Business revenue dip: 12% decline reported by a sample of ten town‑centre retailers.
Looking ahead: next steps and potential adjustments
The councils have pledged to review the impact of the tax increase and parking changes at the end of the 2025‑2026 year. A public consultation is slated for March 2026, giving residents and business owners a formal channel to voice concerns.
Meanwhile, the Department for Levelling Up, Housing and Communities is monitoring the situation as part of a wider review of local tax strategies across England. If the Bedford experiment proves financially sustainable, it could serve as a template for other counties grappling with budget pressures.
Background: how council tax works in England
Council tax is calculated by estimating a local authority’s total funding needs, then dividing that sum across all residential properties based on band classifications (A‑H). Each band pays a proportion of the Band D rate, which is set annually by the council. The total bill also includes precepts for police, fire services, and any parish or town council levies. Most residents spread payments over ten months, from April to January, with the 5th of each month as the due date.
In Bedfordshire, both Bedford Borough and Central Bedfordshire councils have historically kept the tax rate relatively stable, relying on parking fees and other user‑charges to fund specific services. The decision to raise the rate this year marks the first double‑digit increase since the 2015 fiscal year.
Frequently Asked Questions
How will the tax increase affect a typical homeowner?
A Band D property in Bedford will see its annual council tax rise by about £42, spread over ten monthly installments. The extra amount is earmarked for maintaining two free public car parks and covering the cost of new parking enforcement systems.
Why are businesses especially upset about the new parking fees?
Businesses rely on easy, affordable access for customers. The new seven‑day, 10:00‑18:00 pay‑and‑display regime limits shopping trips to four‑hour windows and adds a per‑hour cost, which many shoppers see as a deterrent. Early sales data shows a double‑digit dip in evening footfall.
What alternative funding options were considered?
Council officials explored cutting non‑essential services, raising a separate parking levy, and seeking additional grants from the central government. Ultimately, they concluded that a modest tax raise combined with efficiency savings was the most predictable route.
When and how can residents provide feedback on the changes?
A formal public consultation will open in March 2026. Residents can submit written comments via the council’s website, attend town‑hall meetings, or contact their local councillor directly. The councils have promised to publish a summary of all feedback before the next budget cycle.
Will the free parking spaces be restored if the scheme fails?
If the 2025‑2026 review finds the subsidy unsustainable, the councils say they will reassess the allocation of free spaces. Options could include a scaled‑back free‑parking model or a targeted discount scheme for residents in high‑need areas.
