Agenda and draft minutes

Before the start of the meeting, the Vice-Chair, Councillor Jonathan Bianco wished those present and watching a Merry Christmas and a happy healthy New Year.

Apologies were received from Councillor Ian Edwards and the Vice-Chair, Councillor Jonathan Bianco, chaired the meeting.

No interests were declared by Members present.

The minutes and decisions of the Cabinet meeting held on 20 November 2025 were agreed as a correct record.

It was confirmed that items of business marked Part 1 would be considered in public and those marked Part 2 in private.

The Vice-Chair welcomed to the Cabinet Councillor Wayne Bridges in his new role as Cabinet Member for Community & Environment.

RESOLVED:

That the Cabinet:

1)    Notes the circumstances that have led to the council’s current financial position and the assumptions used in producing the medium-term financial strategy (MTFS) as set out in this report;

2)    Notes the key risks and mitigations associated with this budget strategy as set out in this report;

3)    Approves the draft General Fund and Housing Revenue Account budgets, including growth and savings proposals, fees and charges, and Capital Programme proposals for 2026/27 and beyond (as detailed in Appendices B to F) as the basis for consultation with Select Committees and other stakeholders;

4)    Authorises officers to commence consultation on the budget and notes that this will commence on 24th December for a period of 6 weeks, with the results to be reported for consideration by Cabinet at the February 2026 Cabinet meeting;

5)    Notes that the final General Fund Revenue Budget, Capital Strategy, Capital Programme, HRA 2026/27 Budget and Business Plan and Treasury Management Strategy Statement will be presented to Cabinet on 19 February 2026 to be recommended for approval to the Full Council meeting taking place on 26 February 2026.

Furthermore:

6)    Authorises officers to action where possible any efficiency and invest to save proposals at the earliest opportunity in 2025/26 where operational savings are not public facing and so not subject to formal consultation and where assessed not to have any equality impacts. All other proposals subject to public consultation and equality impact assessment will only be implemented after Cabinet considers the consultation feedback, and subject to Full Council approval;

7)    Notes that the Final Local Government Finance Settlement (LGFS) is awaited from HM Government and that officers will continue to review and update the 2026/27 MTFS up until the point that EFS is confirmed and the final budget setting report is submitted to Cabinet in February 2026;

8)    Notes the material scale of the increase in rateable values for Hillingdon businesses and that officers are taking proactive and urgent communication with relevant parties to determine the veracity of those increases and risks to future income and cashflow of the council if those increases are successfully appealed;

9)    Authorises the Corporate Director of Finance, in consultation with the Cabinet Member for Finance & Transformation, to respond on behalf of the council to the consultation on the Provisional LGFS and to the Mayor of London’s budget consultation;

10)Notes that support will be required from government in the form of Exceptional Financial Support in order to set a balanced budget for 2026/27, and indicatively for later years in the MTFS period, and authorises officers to continue to work with MHCLG representatives to make the appropriate arrangements to get this in place.

In respect of the 2025/26 budget:

11)Approves the new fees and charges for the council’s leisure centres operated by GLL with effect December 2025, as set out within Appendix F.

Reasons for decision

The Cabinet Member for Finance and Transformation introduced the Cabinet’s budget proposals for 2026/27 and future years. It was proposed to release the consultation budget for a six-week period, after which it would return in February before being presented to full Council for approval. The proposals included a three-year revenue forecast and a five-year capital programme. The 2026/27 capital programme totalled £75 million following a review to reduce borrowing, while the HRA programme of £133 million included major works to improve social housing stock.

The Cabinet Member highlighted the continuing financial challenges caused by years of underfunding, recognised in the Fair Funding Review, and explained that transitional relief would leave the Council underfunded until 2028/29 at a net cost of £44 million. Exceptional financial support would be required in later years to achieve a fully balanced budget by 2028/29. Inflationary pressures, rising costs in adult social care, children’s services and homelessness, and additional responsibilities as a Port Authority were noted as key drivers of demand. The proposed Council Tax increase was 4.99%, including the social care precept, and fees and charges were assumed to rise by 10% with resident discounts retained. The current gap for 2026/27 was £59 million, largely due to transitional funding arrangements.

The Cabinet Member confirmed that service modelling and new delivery models were being developed to contain costs, including changes in adult social care, children’s homes and temporary accommodation. The HRA was forecast to maintain £15 million in reserves and continue major works programmes, including the significant housing regeneration project in Hayes.

Business rates revaluation for Heathrow Airport was highlighted as a potential risk by the Cabinet Member, requiring further engagement with Government and the airport operator.

The Cabinet Member thanked the Corporate Director of Finance and his team for their extensive work on the proposals. The Vice-Chair supported the proposals, acknowledging the ongoing pressures in adult social care, SEND and homelessness, and thanked officers and Members for their work in producing a robust consultation budget.

Cabinet, therefore, agreed the proposed 2026/27 budget for consultation.

Alternative options considered and rejected

Alternative proposals considered but rejected by the Cabinet were set out in the public report.

RESOLVED:

That the Cabinet:

1)    Note the revenue and capital budget monitoring positions and treasury management update as at October 2025 (Month 7) as set out in Part A of the report, furthermore, noting the actions proposed by officers.

2)    Approve the financial recommendations as set out in Part B of this report below:

a.    Approve acceptance of £166,583 of grant funding from the Department for Education (DfE) under the Building Stronger Independent Lives (BSiL) programme.

b.    Approve acceptance of £25,000 grant funding to support the EBSNA Response and Enhanced Rehabilitation Outreach Service (EROS).

Reason for decision

The Cabinet Member for Finance and Transformation introduced the Month 7 budget monitoring report, confirming that the overall position remained unchanged from Month 6, with an in-year deficit of £36 million. Minor movements had occurred, but service pressures continued to stem from adult social care, children’s services and homelessness. The 2025/26 savings programme faced £14 million of pressure, with 37% of savings rated red, 48% banked or on track, and £4.8 million in amber, expected to deliver in future years. The savings tracker was being fully reviewed as part of the budget-setting process.

Discussions with Government on Exceptional Financial Support were ongoing, and the Corporate Director of Finance confirmed that a Section 114 notice was not being considered at this stage. A decision on the 2024/25 support request was expected soon, while the 2025/26 outcome was anticipated in February.

The Dedicated Schools Grant position improved to a £10.6 million deficit, representing a £4.4 million improvement on the previous year, with measures taken by the Council beginning to show positive impact. The statutory override remained in place until March 2028, and government had indicated it would assume responsibility for DSG from 2028/29, though details were unclear.

The Cabinet Member advised that the capital programme for 2025/26 had 83% expected to be spent this year and the remainder rephased into 2026/27, subject to review.

The Vice-Chair welcomed the improved stability of the budget position.

Alternative options considered and rejected

None.

RESOLVED:

That Cabinet:

1)    Note the Six-month performance report for 2025/26, as attached in Appendix 1;

2)    Note that it will also be presented to Select Committees in discharging their overview and scrutiny role, and also full Council;

Reasons for decision

The Cabinet Member for Finance and Transformation introduced the six-monthly performance report, which would be considered further by the Select Committee and presented to full Council in January. The Cabinet Member highlighted that the overall message was strong outcomes delivered at low cost, reflecting the long-standing policy of the Administration.

Key points included Hillingdon having the fourth lowest expenditure in London per 100,000 residents despite additional pressures from asylum responsibilities and its role as a Port Authority at Heathrow. Adult social care expenditure was the second lowest among comparable boroughs, with a good CQC rating placing the Council in the top quartile nationally. Children’s services had the third lowest expenditure and retained an outstanding rating. Resident services demonstrated strong value for money, and general fund spending on housing ranked eighth lowest in London, with temporary accommodation costs mitigated by interventions. Rough sleeping remained a challenge, largely due to Heathrow’s presence within the Borough.

The Vice-Chair commented that the report demonstrated the efficiency and value for money of Council services, noting that financial pressures were driven by demand factors beyond the Council’s control rather than poor performance.

Alternative options considered and rejected

None.

RESOLVED:

That the Cabinet: 

1)    Notes the activities undertaken to support older people in Hillingdon.

2)    Endorses the proposed approach for the development of a Hillingdon Age Friendly Plan from 2026/27 as described in the report.

Reasons for decision

The Cabinet Member for Health and Social Care provided an update on the wide range of activities undertaken over the past year to support older residents. Highlights included 8,097 visits to Warm Welcome Centres between December and March, dementia-friendly physical activity sessions attended by 95 residents weekly, and over 2,200 health and well-being events hosted by libraries, attracting thousands of attendees aged over 65.

It was advised that Telecare continued to help residents live independently, with 74% of users aged over 75. A new 70-bed care home had been purchased to expand provision, and public health initiatives included frailty awareness campaigns resulting in 265 referrals. The Hillingdon Advice Partnership secured funding for additional benefits for older residents, with further awards expected. An Age-Friendly Festival was held in October, offering health checks, vaccinations and advice.

The Cabinet Member noted that the second part of the report proposed adopting the World Health Organisation’s Age-Friendly framework to deliver the “Ageing Well” priority within the draft Health and Wellbeing Strategy. This system-wide approach would involve the Council and health partners and focus on eight key areas, including housing, transport, social participation and health services. Consultation on the longer-term plan was scheduled for 2026/27, with annual updates to Cabinet.

The Vice-Chair commended the report as a clear demonstration of strong outcomes delivered efficiently and praised the work undertaken to support older residents.

Alternative options considered and rejected

Cabinet could have decided that it did not wish to pursue the proposed Age Friendly Plan approach.

RESOLVED:

That the Cabinet approves the application for a licensed deficit for all schools listed in Appendix 1 for 2025/26.

Reasons for decision

The Cabinet Member for Children, Families and Education presented a report seeking approval to set licensed deficit budgets for maintained schools. At the start of the academic year, 15 schools reported deficits for 2025/26, an notable increase. It was explained that maintained schools were required to submit balanced budgets annually, but in exceptional circumstances where all alternatives have been explored, a governing body may request a licensed deficit for a defined period, usually one year. Renewing licences enabled schools to continue operating while working towards financial recovery.

The Cabinet Member explained that education finance officers and advisers would meet with headteachers, business managers and, where necessary, chairs of governors to monitor, support and review financial plans. The rise in deficits reflected wider challenges, including declining pupil numbers due to historically low birth rates, high staffing costs and increased operational expenses. These pressures were impacting the Dedicated Schools Grant, although there was no direct effect on the Council’s General Fund. However, cash advances to schools created interest costs and financial risk for the Council.

The Vice-Chair noted that falling pupil numbers were a significant issue for many schools and that resolving these financial challenges would not be easy.

Alternative options considered and rejected

Cabinet could have decided to write off the deficits, which would have needed to be agreed by Schools Forum, or withdrawn the governor delegated powers over the schools’ budgets.

RESOLVED:

That the Cabinet notes the select committee’s comments and the Infrastructure Funding Statement (IFS) 2024/25, to be published on the Council’s website by 31 December 2025.

Reasons for decision

The Cabinet Member for Planning, Housing and Growth introduced the statutory Infrastructure Funding Statement under the Community Infrastructure Levy regulations, outlining how the Council had collected, allocated and spent developer contributions over the past year. The report aimed to ensure transparency and accountability in funding that supports sustainable growth and benefits residents. It had been reviewed by the Residents’ Services Select Committee, which commended strong monitoring arrangements, proactive compliance and timely collection, and noted that no Section 106 funds had lapsed in recent years. The committee also highlighted the need to improve transparency through a clearer and more accessible Section 106 database, a priority for the Council.

The Cabinet Member highlighted key figures which included £736,000 collected through Hillingdon CIL, supporting projects such as the Platinum Jubilee Leisure Centre and the Chrysalis programme, and £5.3 million received via Section 106, with £5 million spent on affordable housing, air quality, parks, community facilities, and skills and training. A further £3 million was received as a carbon offset contribution from a data centre development in Hayes. The Cabinet Member warned that the Mayor of London’s proposal to reduce CIL contributions by 50% would significantly impact local infrastructure funding, and confirmed that the Council would continue to make the case for investment.

The Vice-Chair welcomed the report as a clear explanation of funding sources and expenditure, while expressing concern about the potential reduction in CIL contributions.

Alternative options considered and rejected

None, as publication is a legal requirement.

RESOLVED:

That Cabinet:

1)    Notes the annual update, as set out in the report;

2)    Agrees to continue delivery of the Digital Strategy 2024-27, and endorses the next steps set out in paragraphs 59 - 62;

3)    Agrees to extend the existing delegated authority from Cabinet on 10 October 2024 into 2026/2027, which provides for the Chief Operating Officer to implement the Digital Strategy, agree project variations, incur capital expenditure within approved budget and make all necessary procurement decisions, in consultation with the Corporate Director of Finance and Cabinet Member for Finance & Transformation;

4)    Agrees to a further annual report in a year’s time, setting out progress on the Strategy and delivery of savings targets, seeking agreement to the programmes and projects for the upcoming financial year and seeking further delegated authority if required.

Reasons for decision

The Cabinet Member for Finance and Transformation presented an update on the Council’s digital strategy, highlighting significant progress in modernising systems within a large and complex organisation with many legacy platforms.  A key public outcome was the launch of the new Council website, offering improved navigation and accessibility. Work was also underway to integrate back-office processes so that digital service requests were actioned seamlessly, reducing manual handling and improving efficiency. This transformation was expected to deliver cost savings and faster services for residents.

The Cabinet Member noted that a Local Government Association peer review had praised strong leadership and solid policy foundations, and Government recognition of good practice was recorded in the report. Next steps included accelerating digital transformation, strengthening digital inclusion, embedding technology into adult care services to support independence, and enhancing collaboration with technology partners to achieve better integration and value. It was explained that the ultimate goal was a single, unified view of each resident’s information to improve service delivery.

The Vice-Chair commended the comprehensive report, noting that it clearly set out achievements and future ambitions to modernise the Council’s operations and praised officers for their work.

Alternative options considered / risk management

None.

RESOLVED:

That Cabinet, following due consideration of the consultation outcomes and committee comments, recommends to Full Council the adoption of the updated Statement of Licensing Policy 2026-2031.

Reasons for decision

The Cabinet Member for Community and Environment introduced a report following consultation on the review of the Statement of Licensing Policy, which was updated every five years.

Members were asked to recommend adoption of the revised policy for the period 2026–2030 by full Council. The Cabinet Member explained that the document formed part of the Council’s policy framework and that, since the last review in 2021, there had been only minor changes to legislation and guidance.

Updates were, therefore, limited, focusing on keeping the policy current and strengthening sections on environmental best practice, public safety and the protection of children from harm. The review had been informed by consultation and aimed to support resident-focused service delivery. Cabinet noted the report and agreed to recommend the updated policy to full Council.

Alternative options considered and rejected

None.

RESOLVED:

That Cabinet note the reports to be considered later in private and Part 2 of the Cabinet agenda and comment on them as appropriate for public information purposes.

Reasons for decision

The Vice-Chair introduced the public preview report outlining items to be considered in private later in the meeting.

Alternative options considered and rejected

As set out in the public Cabinet report and also within the private report.

RESOLVED:

That the Cabinet:

1)    Authorises the site to be declared surplus to the Council’s operational requirements and to approve its disposal on the open market;

2)    Notes that an offer has been received from the company outlined in the report for the unconditional purchase of the freehold interest in land at Townfield Road Hayes UB3 2EL for the sum set out in the report;

3)    Agrees to put the property on the open market for a minimum period of 8 weeks to establish best value in accordance with S123 of the Local Government Act 1972 and;

4)    Delegates authority to the Corporate Director of Residents Services, in consultation with the Cabinet Member for Corporate Services & Property, to make all necessary decisions to complete a sale.

Reasons for decision

The Vice-Chair and Cabinet Member for Corporate Services & Property introduced a report, with recommendations which Cabinet agreed, to dispose of a site surplus to requirements as part of the Council’s disposals programme for the financial year, and to sell it on the open market.

Alternative options considered / risk management

Options rejected by Cabinet, based on securing best value and financial reasons were leasing the site, re-developing the site or a direct sale.

RESOLVED:

That the Cabinet:

1)    Agree the demolition of 16 Studio Bungalows and the development of 15 x 4 bedroomed houses and 6 x 3 bedroomed Houses for the use of social houses at Haydon Drive as set out on the attached plan for expected completion by 30 January 2028 at an estimated cost of £12.7m.

2)    Agree to progress the Section 80 Notice of Intention to demolish the bungalows providing the required six-week notice.   

3)    Note that planning consent was received from the Hillingdon Planning Committee and Grant of Permissions was achieved on the 2 October 2025.

4)    Note that Officers have progressed the project to tender (tender closed 2 December 2025). 

5)    Agree to accept £5,597,296 grant funding from the GLA for the project.

6)    Note the GLA requirement to be in contract with the contractor and the required start on site in February 2026 for necessary works progressed during March 2026.

7)    Approve the release of £191k to facilitate start on site February / early March to secure the GLA Funding of £5,597,296, as set out in Appendix A.

8)    Delegate authority to the Corporate Director of Resident Services, in consultation with the Cabinet Member for Corporate Services & Property, to make any further necessary decisions with regard to the project’s implementation.

Reasons for decision

Cabinet agreed to progress ahead with a scheme to develop 21 family sized- houses and associated works. The Vice-Chair and Cabinet Member for Corporate Services & Property welcomed the external funding for the project.

Alternative options considered and rejected

Due to the housing needs requirement in the Borough for larger family sized homes, Cabinet considered that development was the only option to progress.

RESOLVED:

That the Cabinet:

1)    Accepts the tender from Reed Specialist Recruitment Limited for the provision of Lot 1 Deprivation of Liberties Services to the London Borough of Hillingdon at a total cost of £3,330k over a five-year period from 1st April 2026 and with the option to extend for a further one year at a minimum cost of £666k. Furthermore, agrees that this option to extend be delegated to the Corporate Director of Adult Social Care & Health, in consultation with the relevant portfolio Cabinet Member.

2)    Accepts the tender from The Advocacy People for the provision of Lot 2 Integrated Statutory Advocacy Services to the London Borough of Hillingdon at a total cost of £1,441k over a five-year period from 1st April 2026 and with the option to extend for a further one year at a minimum cost of £288,254.81. Furthermore, agrees that this option to extend be delegated to the Corporate Director of Adult Social Care & Health, in consultation with the relevant portfolio Cabinet Member.

3)    Notes the hybrid approach to Best Interest Assessments through a combination of an external provider and internal Best Interest Assessors.

Reasons for decision

The Cabinet Member for Health & Social Care introduced a report and recommendations, which Cabinet agreed, to award two contracts following a tendering exercise, the first being for the provision of Deprivation of Liberties Services providing Independent Best Interests Assessors and Section 12-approved doctor assessments to help meet the Council’s legal duties, and the second relating to advocacy support so individuals have their voices heard, rights respected, and needs met especially when navigating complex health and social care systems.

Alternative options considered and rejected

Options rejected for relevant business and financial reasons were an in-house team, using multiple providers for such services or a separate provider for out-of-borough and mental health advocacy services.

RESOLVED:

That:

1)    Cowley Meeting Hall be declared surplus to operational requirements and disposed of as set out on the site plan.

2)    Officers be authorised to proceed with a statutory public consultation on the intention to dispose of a property within an open space, in accordance with section 123 of the Local Government Act 1972, with consideration of consultation responses delegated to the Corporate Director of Residents Services, in consultation with Cabinet Member for Corporate Services and Property.

3)    Authority be delegated to the Corporate Director of Residents Services, in consultation with the Cabinet Member for Corporate Services and Property, to agree the method of sale and make all other necessary decisions regarding the property transaction, including final sale.

Reasons for decision

The Vice-Chair and Cabinet Member for Corporate Services & Property introduced a report to dispose of a site surplus to requirements. The Vice-Chair explained the background to the matter and moved an amendment to the report’s recommendations, to provide for further discussion to take place with officers on the method of sale, before final decisions were made.

Alternative options considered and rejected

Other property options considered and rejected were as set out in the confidential report.

RESOLVED:

That the Cabinet:

1)    Approves the release of the two restrictive covenants in place on Key House providing 30% of the sale price is paid to the Council.

2)    Agree to hold the funds as ring fenced funds for the charity's use in buying a replacement property in the London Borough of Hillingdon, in the following 36 months, should this be required.

3)    Agree to place a new restrictive covenant on the new property when acquired to protect the Council’s future interest.

4)    Delegate all future decisions concerning the sale or future purchase transaction to the Corporate Director of Residents Services, in consultation with the Cabinet Member for Corporate Services and Property.

Reasons for decision

The Vice-Chair and Cabinet Member for Corporate Services & Property introduced a report, with recommendations which Cabinet agreed, in relation to releasing restrictive covenants the Council had previously put in place when it sold the property in 2002, following discussions with the current freehold owner, a charitable organisation.

Alternative options considered and rejected

Other property options, set out in the confidential report were rejected in order to ensure financial interests and best value obligations were met.

Item 5, the Cabinet’s budget proposals was taken as an urgent item. No further items were considered. The meeting closed at 7.46pm