Hounslow Council's wholly owned business venture, the Lampton Group, is facing increased scrutiny after accumulating over £15 million in losses since its establishment in 2013. The group delivers a range of services including waste collection, grounds maintenance, and leisure centre operations, in addition to housing maintenance. Performance is assessed through financial metrics and service quality1.

The issue was brought to the forefront during a Borough Council meeting on Tuesday, where Councillor Jack Emsley proposed a motion, seconded by Councillor Vickram Grewal, to address the group's financial performance and service delivery.

The motion highlights several concerns:

  • The Lampton Group has failed to generate revenue for the council for over a decade.
  • Services delivered by Lampton, particularly housing maintenance, have fallen below expected levels.
  • There are inaccuracies in the group's budgeted finances, with large variances in actual losses each year.
  • The current financial trajectory poses a heightened financial risk to the borough.

The motion proposes several actions, including:

  • Publishing the external report into the Lampton Group that was commissioned last year. The motion requests that the report into the Lampton Group commissioned last year to be published in full by the date of the next Overview and Scrutiny Committee meeting , implying it has been withheld.
  • Commissioning an independent review of the group.
  • Creating a new Shareholder Scrutiny Committee.
  • Disqualifying Shareholder Committee members with poor attendance.
  • Requiring full council approval for any loan or cash advance to Lampton above £99,999.

The Treasury Management Mid-Year Report 2025/26, presented by Councillor Shantanu Rajawat, Leader of the Council, noted that the Lampton Group continues to face cashflow pressures but has made three consecutive quarterly payments on time.

The Lampton Group Update (September 2025) indicated that the group is forecasting a consolidated loss of £2.20m against a budgeted loss of £0.83m, resulting in a variance of £1.37m. The most significant contributor to this shortfall is Lampton Investment 360 Ltd, which is forecasting a £1.83m loss driven by lower rental income, increased voids, and higher interest costs. Lampton Group is undertaking a comprehensive review of its housing portfolio to improve rental income and asset performance. This includes reassessing rent levels, addressing void properties, and exploring strategic options to alleviate cashflow strain. Coalo Ltd is also forecasting a £0.89m loss, £0.35m worse than budget, primarily due to a reduction in core housing maintenance commissions from the Council.

  1. The performance levels are assessed through financial performance, including interest payments and overall profitability, and through service quality and cost-effectiveness for the Council.