Decision details

RESOLVED:

That the Cabinet:

1.    Notes the revenue and capital budget monitoring positions and treasury management update as at December 2025 (Month 9) as set out in Part A of the report, furthermore, noting the actions proposed by officers.

2.    Approves a change to the funding basis for a cohort of 21 in-house residential acquisitions, whereby funding of £3.45m is switched from Right to Buy (RTB) receipts to £4.54m of Greater London Authority (GLA) grant funding, within the Council’s existing approved acquisition programme. The balance enables a reduction in the Council’s borrowing requirement of £1.09m.

3.    Approves the repurposing of £3.285m of Earmarked Reserves as at 31 March 2025 to rectify changes required by the External Auditors to the final 2024/25 Accounts.

4.    Approves a change to the Treasury Management Strategy to allow the use of capital resources for revenue purposes up to Exceptional Financial Support (EFS) limits should the Government “be minded” to approve the Council’s application.

5.    Grants permission to liquidate the Council’s £15m of longer-term investments to protect the Council’s cash position if required in March.

6.    Approves acceptance of £155k of grant funding from the Violence Reduction Unit (VRU) for 2025/26 for direct investment in prevention activity for children at risk of suspension and exclusion from school.

7.    Approves acceptance of £149,560 of grant funding from the Ministry of Defence (MOD) for 2025/26 and 2026/27 for direct investment in improving outcomes for service children and strengthening school support models.

8.    Approves acceptance of £16k of grant funding from the Department for Education (DfE) for 2025/26 for direct investment in improving the mentoring provision offered to Early Career Teachers enrolled with Learn Hillingdon.

9.    Approves acceptance of £242k of grant funding from NHS England via the ICB.  Partnerships for Inclusion of Neurodiversity in Schools (PINS) is a national programme funded by Department for Education (DfE) and supported by the Department for Health and Social Care (DHSC) and NHS England (NHSE).

10.Approves acceptance of £677,948 of grant funding from the Department for Education (DfE) for 2026/27 to support the implementation and delivery of the Staying Close initiative in Hillingdon.

Reasons for decisions

The Cabinet Member for Finance and Transformation introduced the budget monitoring report for Month 9 (December 2025), noting that the General Fund overspend stood at £35.9 million - an improvement of £0.1 million from Month 7 - and that the position had been broadly stable since Month 6. The main pressures continued to arise from adult social care, children’s services and homelessness. The level of ongoing risk had reduced to £5.7 million, with £2.6 million in identified opportunities, largely from anticipated reductions in waste disposal costs.

The savings programme had been fully reviewed. Of the £38.8 million savings target, £19 million was banked or on track, with the remainder rated amber with expected slippage into the next year or written out as undeliverable. Furthermore, the General Fund reserve was now overdrawn by £34.4 million. Discussions with the Government on the Council’s Exceptional Financial Support (EFS) request were ongoing, and the Section 151 Officer confirmed he was not minded to issue a Section 114 notice while these continued. The Cabinet Member also highlighted recent Government confirmation through ‘Fairer Funding’ that Hillingdon had been significantly underfunded for many years, though full correction would take three years.

The Cabinet Member noted the Dedicated Schools Grant showed a favourable movement, resulting in a forecast deficit of £9.6 million for the year and a cumulative deficit of £75.5 million. Recent Government announcements indicated that 90% of this deficit would be covered nationally, reflecting recognition of longstanding underfunding of SEND provision. The Housing Revenue Account (HRA) remained stable, with reserves forecast at £15 million.

The capital programme totalled £357.5 million across the General Fund and HRA, with 73.6% expected to be spent in-year and the remainder rephased into the next financial year. Major improvements for residents had included completion of the Platinum Jubilee Leisure Centre in West Drayton and the new Uxbridge Library, along with ongoing upgrades to the Civic Centre and continued investment in housing stock, acquisitions and new builds.

Alternative options considered and rejected

None.