Agenda and draft minutes

Apologies were received from Councillor Jane Palmer.

No interests were declared by Cabinet Members present.

The minutes of the Cabinet meeting held on 15 January 2026 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.

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.

RESOLVED:

That the Cabinet approves for recommendation to Council:

1)    The General Fund and Housing Revenue Account revenue budgets and Capital Programme budgets for 2026/27 and the Medium-Term Financial Strategy, including savings proposals, fees and charges as detailed in Appendices A, B and H1, having taken the Select Committees’ comments, public consultation responses and Equality Impact Assessments conscientiously into account as set out in Appendices C, D and E.

2)    The use of up to £62.0m in Exceptional Financial Support to balance the 2026/27 budget.

3)    An increase in the Hillingdon element of the 2026/27 Council Tax of 4.99% (including the Adult Social Care precept of 2.00%), with a charge of £1,534.95 per Band D property.

4)    The Flexible use of Capital Receipts Strategy to deliver efficiency savings, including utilisation for redundancy costs, as detailed at paragraphs 39 to 45 and Appendix F, and the use of £2.733m of capital receipts for this purpose.

5)    The Capital Strategy, Treasury Management Strategy Statement, Investment Strategy, and Minimum Revenue Provision Statement for 2025/26 to 2030/31 as detailed at Appendix G.

6)    The Reserves Policy set out in paragraphs 50 to 60.

7)    The proposed London Borough of Hillingdon Pay Policy Statement for 2026/27 set out at Appendix I.

8)    A rent increase of 4.8% (CPI +1%) from 1 April 2026 in line with the maximum increase for social rent set by the national rent policy, whilst noting that the Council continues to set rents for re-lets (both new tenants and transfers) up to formula target rent.

9)    That tenant service charges be varied in line with estimated actual costs for 2026/27, from 1 April 2026 (noting the estimated charges set out in Appendix H2).

10)A budgeted drawdown from DSG Reserves in 2026/27 of £8.2m.

11)That use of general reserves or balances, including any virement between the General Fund budget, Housing Revenue Account budgets or Capital budgets during the MTFS financial years 2026/27 to 2028/29 be delegated to the Cabinet, in respect of those functions which have been reserved to the Cabinet.

12)Note the Council Tax Resolution resulting from the proposed budget as set out in Appendix J to this report and recommend Full Council to approve it.

13)That the Council’s relevant basic amount of Council Tax for 2026/27 is not excessive in accordance with principles approved under Section 52ZB Local Government Finance Act 1992 and therefore a referendum will not be triggered.

That Cabinet:

14)Notes that the budget is balanced on the assumption of sufficient Exceptional Financial Support being agreed by the Ministry for Housing, Communities and Local Government (MHCLG) through an in-principle capitalisation support decision, and that this will need to be formally confirmed before full Council can approve the budget.

15)Notes the Council’s request for Exceptional Financial Support (EFS) from the MHCLG of up to £88m for 2025/26 and £62m for 2026-27, decreasing thereafter in 2027/28 with the aim to not need any further EFS in 2028/29.

16)Notes and acknowledges that in recommending the budget to full Council, due consideration has been given of the Equality Impact Assessments on individual savings proposals and the cumulative impact of the budget on groups with protected characteristics as set out in Appendix E and paragraphs 123 to 132.

17)Agrees that all drawdowns from general and other central contingencies will require Cabinet approval under the advice of the Corporate Director of Finance.

18)Authorises the Corporate Director of Finance to make any technical adjustments to the budget such as virements to align the budget with the proposals and recommendations within this report, to allocate inflation or correct budget allocations of growth and savings to service areas as may be required.

Reasons for decision

The Cabinet Member for Finance and Transformation introduced the 2026/27 budget proposals to be recommended to full Council, highlighting key points ahead of the full budget speech the following week. The report and appendices built on the draft budget issued in December 2025, which had been subject to public consultation; Cabinet noted the responses summarised in Appendix D. The budget was balanced on the basis of planned Exceptional Financial Support (EFS), subject to Government approval, which was expected the following week. The previous request for 2024/25 support had been withdrawn following near finalisation of the accounts, and the updated EFS request totalled £150 million across 2025/26 and 2026/27.

The Cabinet Member clarified that the paper presented a one year budget alongside a three-year medium term forecast and a five year capital programme. He reiterated that Hillingdon had been underfunded for many years, a position now recognised in the new Fair Funding formula. Core spending power was due to rise by £105.3 million over three years, although £28.7 million of this would come from annual Council Tax increases proposed at 4.99% and further amounts from inflation and assumed business rate growth.

Following refinement of growth and savings proposals, the final budget gap stood at £62 million. Temporary accommodation demand added £1.6 million to growth and increased future year pressures. It was noted that Council Tax was proposed to increase by 4.99%, retaining one of the lowest rates in London, and fees and charges were assumed to rise by 10%. Errors in the Ruislip Lido parking charge from the December report had been corrected.

The Cabinet Member advised that the proposed five year General Fund capital programme totalled £268.5 million, including projects such as the Hillingdon Outdoor Activity Centre, Care Home and £8.3 million for roads. The Housing Revenue Account was underpinned by a 30?year business plan, with rents proposed to rise by 4.8% (CPI + 1%) and investment continuing in both stock improvements and new homes. Regeneration schemes in Hayes Town Centre and Avondale would deliver 236 new homes across phases 2, 3 and 5, alongside further schemes at Haydon Drive, Falling Lane, Otterfield Road, homes in in Uxbridge and Nelson Lane.

Cabinet considered the equality impact assessments in Appendix E and agreed the report’s recommendations, including the use of EFS to balance the budget.

The Leader of the Council noted the increased response rate to the consultation and the value of resident feedback.

Two minor corrections to the Council Tax resolution in Appendix J were agreed. Following consideration of all the information presented, Cabinet, therefore, resolved to recommend its budget proposals to the Council meeting on 26 February 2026 for final consideration.

Alternative options considered and rejected

The Cabinet could have chosen to vary the proposals in its budget before recommending it to Council.

RESOLVED:

That the Cabinet:

1)    Approve the Dedicated Schools Grant budgets for 2026/27 as set out in paragraph 1.2, Table 2 below. 

2)    Approve the Primary and Secondary schools block funding formula for 2026/27 as set out in paragraph 2.2 below.

3)    Note the Early Years Funding Formula allocation, for which a consultation with Early Years providers is currently underway as set out Section 3 below.

4)    Note the High Needs Block budget for 2026/27, which includes the 0.5% Schools Block Transfer approved through the disapplication process by the Secretary of State on 6 February 2026.

5)    Should any further Council approval regarding the Schools Budget 2026/27 be required, agree to delegate authority for this to the Cabinet Member for Finance & Transformation and Cabinet Member for Children, Families & Education and in consultation with the Corporate Director of Finance, to determine under urgency provisions.

6)    Request the waiver of the scrutiny call-in period, in accordance with constitutional obligations, so that schools can be formally notified of their approved individual budgets by the 28 February 2026.

Reasons for decision

The Cabinet Member for Children, Families and Education introduced the 2026/27 schools budget, seeking Cabinet approval for block funding allocations for schools and early years provision following consultation with the Hillingdon Schools Forum. The Dedicated Schools Grant (DSG) for 2026/27 totalled £445 million, an increase of 5.2% from the previous year. Much of this uplift reflected the rolling in of the National Insurance Contributions Grant and the full year effect of the Schools Budget Support Grant, with the real terms increase estimated at around 0.1%.

The Cabinet Member explained that the local schools funding formula continued to move closer to the National Funding Formula. The Schools Forum had been consulted on a proposed 1% transfer from the Schools Block to the High Needs Block and on the Education Statutory Duties delegation request but did not support either proposal. A related disapplication request had been submitted to the Department for Education, and the Secretary of State confirmed approval for only a 0.5% transfer; a final decision on the statutory duties request was awaited. This outcome would affect the final allocations.

It was advised that the reduced transfer placed significant pressure on education budgets, particularly the High Needs Block. The Schools Forum had been informed that the Council would need to pause non statutory funding for the year, as it could not be sustained without the full 1% transfer - an outcome described as disappointing, especially for highly-inclusive maintained schools.

The Cabinet Member noted substantial growth in the Early Years Block due to the expanded Government entitlement for children aged nine months and over. Furthermore, consultation on SEND funding reforms was ongoing, including proposals to increase the supplement for disadvantaged two-year-olds, reduce supplements for three and four-year-olds, redirect funding to SEND inclusion, and move towards a real time SEND funding model. Final decisions would be taken under delegated authority after consultation.

The Leader of the Council welcomed the Government’s decision to address the DSG deficit and praised officers for their work in bringing the position back into improved balance, noting that Hillingdon compared favourably to many authorities still experiencing worsening DSG deficits.

In considering all factors, Cabinet agreed the Schools Budget and given the urgency of ensuring school budgets were notified to schools by 28 February, requested the waiver of the scrutiny call-in period.

Alternative options considered and rejected

Cabinet could have decided to recommend that the Schools Forum reconsider the proposed funding for schools.

RESOLVED:

That Cabinet:

1)    Considers the consultation responses and analysis set out;

2)    Considers the Equalities Impact Assessment in Appendix 4.

3)    Agrees that the Council uses powers enacted under Section 56 of the Housing Act 2004 to designate the Additional Licensing Scheme for Houses of Multiple Occupancy to the whole borough.

4)    Agrees the Additional Licensing Conditions detailed in Appendix 2.

5)    Agrees the final Schedule of Fees detailed in Appendix 3.

6)    Notes the implementation requirements and proposed timeline.

Reasons for decisions

The Cabinet Member for Planning, Housing and Growth presented final proposals for additional licensing controls for Houses in Multiple Occupation (HMOs), following an extensive borough wide consultation. He noted that poorly managed HMOs were a frequent concern for residents, often affecting the character of neighbourhoods, local streets and quality of life. Residents had been clear that they wanted higher standards and action taken where properties were badly managed. The Cabinet Member was clear that the Administration had listened and was delivering on the commitment made by full Council to tackle unlicensed and substandard HMOs.

Cabinet was reminded that consultation on a proposed borough wide additional licensing scheme had been agreed in October 2025. The consultation results showed strong support, with four in five respondents backing the scheme and believing it would improve neighbourhoods, raise standards and help identify rogue landlords. The evidence base also supported intervention, with nearly 2,000 unregistered HMOs estimated in the Borough, serious housing hazards and thousands of anti social behaviour incidents linked to HMOs across all wards. The Cabinet Member stated that doing nothing was not an option and that the scheme would support responsible landlords while targeting poor practice.

The proposed licence fee was based on full cost recovery to fund enforcement without burdening taxpayers. Subject to approval, the designation would be made in February, followed by the statutory three month notice period. Applications would open in May, with full compliance required by 23 August 2026 and enforcement beginning on 24 August 2026. The Cabinet Member highlighted that the scheme aligned with the borough wide Article 4 Direction, ensuring a coordinated approach across planning and housing enforcement.

The Cabinet Member thanked officers, in particular Richard Webb, Stephanie Waterford, Michelle Greenidge and the wider Residents Services team, for their extensive work in gathering evidence, running the consultation and preparing the report. He noted that the proposals demonstrated a clear commitment to listening to residents and taking decisive action to protect neighbourhoods.

The Leader of the Council agreed that well run HMOs formed an important part of the housing mix, but poorly managed HMOs were highly problematic for residents. He stressed that introducing the scheme must be followed by firm enforcement to uphold standards.

Cabinet, therefore, duly considering the evidence and rationale set out along with the consultation outcomes and equalities impact assessment, agreed to introduce an Additional Licensing Scheme for HMOs in Hillingdon.

Alternative options considered and rejected

Cabinet could have decided to do nothing, use alternate powers or a partial policy, but considered these would not effectively manage the use of HMOs in the Borough.

RESOLVED:

That the Cabinet:

1)    Consider the outcome of the consultation and select committee comments;

2)    Endorse and recommend that the Hillingdon Community Safety Strategy 2026-2029 in Appendix 1 be presented to full Council for adoption.

Reasons for decisions

The Cabinet Member for Community and Environment introduced the Safer Hillingdon Partnership Community Safety Strategy for 2026–2029, to be recommended to full Council. The strategy reflected the shared commitment of partners to keeping Hillingdon safe and strengthening public confidence. It was shaped by the latest Strategic Needs Assessment and the Crime and Disorder Survey, which highlighted residents’ concerns about burglary, drug dealing, knife crime and anti-social behaviour, as well as young people’s worries about gangs, social media and feeling safe in public spaces.

The Cabinet Member explained that the strategy set out four priorities: creating safer neighbourhoods, tackling violence against women and girls, reducing serious violence, and preventing harm through early intervention and safeguarding. It also responded to emerging risks including hate crime, modern slavery and online radicalisation. The focus was on prevention, partnership working and practical action, ranging from improved CCTV and environmental design to stronger support for victims, targeted work with young people and disruption of those exploiting vulnerable individuals. Thanks were extended to all partners and officers involved in developing the strategy.

The Leader of the Council noted the contrast between recorded crime statistics showing London as safer than before, and the lived experience of residents, many of whom felt less safe. He stressed the importance of the strategy and the partnership with the Police and welcomed continued joint efforts to address anti-social behaviour and low?level crime.

Alternative options considered and rejected

Cabinet could have not adopted a Strategy or agreed an amended Strategy but discounted these options to ensure there were priorities in place for the Safer Hillingdon Partnership to prevent and reduce crime and disorder.

RESOLVED:

That Cabinet:

1)    Notes and considers the 4 responses from the consultation on the PAN change to community primary phase set out in the report, along with the select committee comments;

2)    Agrees the proposal to reduce the Published Admissions Number (PAN) for Field End Infant School from 90 to 60, taking affect from September 2027;

3)    Agrees that the Local Authority supports the following proposals submitted following formal consultations from non-community schools, which are all taking affect from September 2027.

a)    Field End Junior School to reduce its PAN from 90 to 60

b)   St Martin’s Church of England Primary School to reduce its PAN from 60 to 30

c)    Park Academy West London to reduce its PAN from 180 to 150,

Reasons for decisions

The Cabinet Member for Children, Families and Education introduced a report proposing to reduce the Published Admissions Number (PAN) of Field End Infant School. It was clarified that the school currently educates children aged 3 to 7 and that the PAN would be reduced from 90 to 60 from September 2027. This aligned the infant school with Field End Junior School, which had moved to a two?form?entry model two years earlier. The Cabinet Member confirmed that there would still be sufficient school places for local families and siblings and that the reduction would also adjust the school’s distance priority radius in line with the Council’s admissions arrangements.

It was also reported that the Council was supporting PAN reductions at other non community schools as set out in the report. The Cabinet Member explained that reductions reflected the significant fall in pupil numbers being experienced across London and that the Council was increasingly needing to manage school capacities to ensure sustainability.

The Leader of the Council noted that falling rolls were impacting London boroughs widely and that Hillingdon had been comparatively less affected to date. He concurred that such measures were necessary to ensure the long term viability of schools and anticipated further interventions in future.

Alternative options considered and rejected

Cabinet could have decided to not change the existing three form entry but considered there to be implications of this on the schools’ finances and sustainability.

RESOLVED:

That Cabinet approve the request from the London Diocesan Board for Schools and Holy Trinity CofE Primary School, Northwood, and agree the freehold transfer of the land together with the building as set out in the report and site plan attached to the London Diocesan Board for Schools.

Reasons for decision

The Cabinet Member for Corporate Services and Property introduced a report regarding the statutory transfer of Council owned land for the benefit of Holy Trinity Church of England Primary School in Northwood. The school, a small voluntary aided primary in the north of the Borough, had proposed repurposing its former caretaker’s house, which was no longer required for that function, and not use as additional classroom space to expand and improve its nursery provision. Under the relevant legislation, the Council was required to transfer the freehold of the land to facilitate this change of use. Cabinet noted the proposal and the statutory duty involved.

Alternative options considered and rejected

Cabinet could have refused the transfer of the Council’s land but considered this would not enable the school to grow its education provision and that it would contrary to statutory guidance on the matter.

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 Leader of the Council 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 accepts the Direct Award from O’Hara Bros Surfacing Limited for the provision of the Highways Term Service Contract for a three-month period from 1 April 2026 to 30 June 2026.

Reasons for decisions

The Cabinet Member for Planning, Housing & Growth introduced a report and recommendations, which Cabinet agreed, to award a short-term contract to provide service continuity for the Council’s highways functions in anticipation of a long-term contract being awarded later in the year.

Alternative options considered and rejected

Cabinet could have considered developing an in-house highways function or pursue alternate procurement approaches but discounted these due to service continuity and not best value.

RESOLVED:

That Cabinet:

1)    Accept the tender from J McCann & Co Limited for the provision of a Street Lighting Term Service Contract for installation, maintenance and test works on behalf of the London Borough of Hillingdon for a Seven Year period from 1 April 2026 to 31 March 2033 at an estimated cost of up to £12.25m excluding annual uplifts based on inflation.

2)    Furthermore, agrees that this includes the provision to extend the contract for a further Five Years at an estimated cost of up to £8.75m (£1.75m per year, excluding annual inflationary uplifts), delegating approval to the Corporate Director of Residents Services, in consultation with the Cabinet Member for Planning, Housing & Growth, subject to contractor performance and commercial terms.

3)    Authorises the grant of a seven years plus five years lease to J McCann & Co Limited for a workshop at Harlington Road Depot, noting that this lease will be outside the security of tenure provisions and will enable the council to terminate concurrently with the commercial contract as detailed in this report and instructs Legal Services to complete the appropriate lease documentation.

Reasons for decisions

The Cabinet Member for Planning, Housing and Growth introduced a report and recommendations, that Cabinet agreed, to award a new Street Lighting contract following a competitive procurement process along with the necessary lease to operate from the Harlington Road Depot.

Alternative options considered and rejected

Cabinet could have considered a multiple contract option or to bring the service in-house but discounted these options for the reasons set out in the confidential report.

RESOLVED:

That the Cabinet approves writing off £286,541.92 in respect of individual irrecoverable Non-domestic Rates debt as set out in the report.

Reasons for decisions

The Cabinet Member for Finance & Transformation introduced a report and recommendations, which Cabinet agreed, to write off irrecoverable business rate debt for two companies that were in liquidation.

Alternative options considered and rejected

None, as the Council was unable to undertake further recovery action.

No further business was considered. The meeting closed at 7.32pm