Decision details

RESOLVED:

That the Cabinet:

1)    Notes the revenue budget monitoring positions as at January 2026 (Month 10) as set out in the report, noting the actions proposed by officers.

2)    Agrees the virement of £3,696k from the current allocated budget for the Madison Brook Residential Property Acquisitions budget to the In-House team’s capital budget.

3)    Agrees that the planned fee increases for the Imported Food Office as set out in the 2026/27 budget be put on hold until further notice, pending a review.

Reasons for decision

The Cabinet Member for Finance and Transformation introduced the Month 10 budget monitoring report, confirming that the General Fund position remained broadly stable since Month 6. The in?year overspend stood at £36.3 million, with £26 million attributable to service pressures, primarily in children’s services (£6.1 million), adult social care (£6.5 million) and Resident Services, mainly housing (£8.3 million), alongside £5.2 million in financing costs. The General Fund reserve was overdrawn by £34.8 million, which would be addressed through the agreed Exceptional Financial Support.

The position on the savings programme was largely unchanged, with 48% of savings banked or on track for delivery. £4.2 million was expected to slip into 2026/27 and £14.9 million had been written out as part of the 2026/27 budget?setting process. Ongoing risks remained, particularly linked to Hillingdon’s role as a Port Authority and wider international instability, and officers continued to monitor all financial pressures closely.

The Cabinet Member noted that the Dedicated Schools Grant in-year deficit had reduced to £9.2 million, an improvement of £0.4 million from Month 9, with the cumulative deficit forecast at £75.1 million. This was expected to be mitigated by the High Needs Stability Grant due in autumn 2026. The Housing Revenue Account continued to forecast a break?even position.

The Leader of the Council welcomed the continued stability in the monitoring position, noting that this increased confidence in forecasting, while recognising the need to prepare for potential future financial pressures arising from international events.

Cabinet noted the report and agreed the recommendations.

Alternative options considered and rejected

None.