Council agrees raft of front line cuts to stave off bankruptcy

The borough council faces a £49m shortfall in its finances

Up to 365 jobs could be cut by a council which says it must cut major services to prevent bankruptcy caused by the financial impact of Covid-19.

Luton Borough Council faces a £49m shortfall in its finances - and needs to save almost £22m.

An emergency budget passed on Tuesday means school meals, road maintenance - and 365 jobs - could be cut.

Finance lead, Labour councillor Andy Malcolm, said the decision had left him with a "profound sense of grief".

The authority expects to lose out on £37m revenues from Luton Airport due to a huge drop in passenger numbers.

The government said it was giving councils "unprecedented support".

Grey skies: Luton Borough Council cannot rely on its dividend fom Luton Airport

Mr Malcolm had earlier warned the authority would have to make "extreme savings" as it struggled to close the shortfall.

He did not rule out an increase in council tax.

As the majority shareholder in Luton Airport, the council usually benefits from an annual dividend of about £27m.

"Over the last 10 years of huge government cuts because of austerity, we have managed to offset some of that with income from the airport, increasing from £7m up to £32m last year," Mr Malcolm said.

"But without any support, our communities are going to feel the full weight of austerity."

He added: "The government needs to provide more funding to local authorities for local services that people rely on because it's not sufficient at the moment."

Luton Borough Council is to make major cuts to its front line services

Proposals include stopping the school meals service, reductions in highways maintenance, charging for green waste collection and reduced funding for social care and mental health support services.

At least 365 posts are at risk, although vacant posts would be scraped and voluntary redundancies offered.

The council received £11.2m in emergency government funding during the pandemic, but has asked for a further £50m.

One of Bedfordshire's Conservative MPs said the council should sell some of its stake in the airport