Luton Council leader reacts to criticism from Beds MP over £35m government support

On Wednesday, Communities Secretary Robert Jenrick announced that Luton was one of four councils to receive government financial aid.

Under the arrangement, Luton Borough Council can borrow up to £35m in order to balance its budget.

MP for North East Beds, Richard Fuller, has described the deal as a "bail out" for local authorities "which have badly messed up their finances" (see story here).

Today, both Luton Borough Council leader Cllr Hazel Simmons and the borough's portfolio holder for finance, Cllr Andy Malcolm, strongly refuted Mr Fuller's criticisms.

Cllr Simmons insisted the support is not a "bailout" or a "bung", saying: "It is not a grant and will need to be repaid in the medium term.

"This is positive news for Luton following our emergency budget in July last year when we made £22 million of devastating cuts.

"This will also help us to continue to deliver a successful recovery from the pandemic.

"Secondly, following a recent financial appraisal by government in the lead up to this agreement, Luton Council is seen as financially well managed and making prudent decisions. It also confirms that we have been catastrophically impaired by the exceptional effects of the pandemic on aviation.

"Finally, I would like to remind Richard Fuller MP of the importance of Luton Airport to regeneration, businesses and of course employment, not only for Luton, but both regionally and nationally.

"Many are employed at Luton Airport or in airport-related businesses, like in the surrounding conurbation, including North East Bedfordshire."

Cllr Malcolm added: “Mr Fuller is totally incorrect to suggest Luton Council has failed to balance its budget and seems to have his own agenda here.

"The council is financially well managed and from the outset of the pandemic took decisive action - and a number of painful and difficult choices - to ensure our finances are in a strong position to face up to the challenges of the future.”