Hillingdon Council is facing a significant budget overspend of £29 million, a figure that has seen a notable improvement of around £7.7 million compared to earlier in the year. The council's Cabinet met on Thursday, June 25, 2026, to discuss the draft outturn position for the 2025/26 financial year.
Councillor Steve Tuckwell, Leader of the Council, presented the budget report, acknowledging the overspend but highlighting the direction of travel
as positive. He attributed the improvement to clear political leadership, determined focus on financial control, departmental underspends, additional public health funding, and tighter financial management.
The report detailed that departmental underspends and additional public health funding contributed approximately half of the improvement, alongside strengthened corporate oversight on spending. The remainder of the improvement reflected technical adjustments around business rates and the timing of payments, as well as grants previously held centrally.
Pete Carpenter, Deputy Chief Finance Officer, commented that the report marked further progress in the Council's financial recovery, supported by exceptional financial support, though reserves remained below the London average.
This exceptional financial support (EFS) was instrumental in the Council's financial recovery process, allowing it to rebuild reserves and cover the deficit. The Council successfully applied to the Ministry of Housing, Communities and Local Government (MHCLG) for EFS, without which it could not have set a legally balanced budget in 2026/27. The 2025/26 outturn position assumed £40m to rebuild reserves, £40m to cover the 2025/26 overspend, and £4m of headroom. The Council's outturn position applies £83m of the EFS amount.
Despite the progress, Mr Carpenter noted that the overall reserves position of £68 million is still around £70 million less than the average London Council had at the end of the last financial year. This means the Council still don't have a lot of resources to actually do and deliver transformation,
potentially limiting its capacity to invest in or transform local services.
The meeting information does not explicitly project the impact of the budget situation on local services or council tax for Hillingdon residents. However, the reliance on EFS for the upcoming 2026/27 financial year indicates projected challenges. The primary reasons for the initial £29 million overspend are not explicitly detailed in the provided information, but the context suggests pressures related to demand for services and financial management.
More details on the council's financial position can be found in the Public reports pack and the Cabinet Agenda B - Budget Outturn 2526.
