Issue - meetings

RESOLVED:

That:

1.    the revenue and capital budget monitoring positions and treasury management update as at September 2025 (Month 6) as set out in Part A of the report be noted, furthermore, the actions proposed by officers be noted.

2.    the financial recommendations as set out in Part B of this report be approved.

a)    the budget virement of £8,850k from the General Contingency budget to resolve underlying budget pressures that are currently being covered by the release of these funds, be approved.

b)   the introduction of non-commercial photography fees for the use of council-owned green spaces for engagement or wedding photography, be approved.

c)    Councillor Martin Goddard be removed as a voting Member of the Shareholder Committee and Councillor Eddie Lavery be appointed as a voting Member of the Shareholder Committee.

Reasons for decision

Before considering the report, the Leader expressed gratitude to Councillor Goddard for over four years of dedicated service as Cabinet Member for Finance and Transformation, praising his integrity and commitment during a challenging period. The change in responsibilities was explained as part of succession planning, with Councillor Lavery working alongside Councillor Goddard to ensure a smooth transition.

Councillor Lavery, the new Cabinet Member for Finance and Transformation, echoed the Leader’s thanks to Councillor Goddard and acknowledged the valuable support received since the summer, which had enabled a smooth transition into the role.

The new Cabinet Member introduced the Month 6 budget monitoring report covering the General Fund, Housing Revenue Account (HRA) and capital programme. The General Fund showed an overspend of £36 million, up £5.8 million from Month 5, driven by pressures in adult social care, children’s services and homelessness, alongside adjustments to transformation capital. The Cabinet Member gave an overview of delivery of the savings programme for 2025/26 totalled £38.8 million, with 48% banked or in progress. Reviews would continue monthly.

The Cabinet Member highlighted wider financial challenges, including national pressures, Hillingdon’s Port Authority responsibilities and arrivals from the Chagos Islands. He noted the Council remained a low-tax, efficient authority despite being underfunded by around £50 million annually under the current formula. Discussions with Government were ongoing in respect of Exceptional Financial Support, and therefore the Section 151 Officer was not minded to issue a Section 114 notice, supported by positive engagement and legal advice.

The HRA was performing to budget, while the capital programme at 83% was expected to be spent this year and the remainder rephased. The Cabinet Member confirmed an error in the published capital budget had been corrected in respect of funding for the Chrysalis Scheme. The Dedicated Schools Grant in-year deficit remained the same, with initiatives underway to stabilise the position.

The Leader of the Council noted recent publicity regarding London-wide overspends by councils of £800 million this year and £1 billion next year, stressing the need for continued savings and efficiencies. He clarified that £12.3 million of savings marked red were expected to slip into 2026/27 rather than being undeliverable.

The Leader also moved a late addendum to amend membership of the Shareholder Committee following Cabinet changes, which was agreed.

Cabinet agreed the reports recommendations, which also included virement of contingency budget and the introduction of new non-commercial photography fees for the use of council-owned spaces.

Alternative options considered and rejected

None.