Hillingdon Council has reported a forecast underspend of £4.069 million for the General Fund in its latest budget monitoring report for Month 4. This figure represents a significant improvement of £4.653 million against the forecast at the end of Period 2.
The improvement is attributed to the re-implementation of the council's budget monitoring system (EPM) and enhanced service manager engagement from Period 3, which allowed for more detailed challenge and validation of budget monitoring. The £4.069 million underspend at Period 4 is comprised of £1.713 million across service areas and £2.356 million relating to Corporate Budgets.
The report, presented to the Cabinet on Thursday, 17 September 2026, also indicated a net nil variance for the Housing Revenue Account (HRA). This is achieved through a £1.3 million pressure on operating costs being offset by a £2.6 million forecast underspend on capital financing costs. The net surplus of £1.3 million is forecast to be used to repay outstanding debt.
While the General Fund is forecasting an underspend, net risks and opportunities totalling £2.781 million have been identified. The potential risks amount to £2.996 million, largely relating to potential changes in the costs of homelessness support. The opportunities are £0.215 million. Should all these risks and opportunities materialise, they could reduce the gross forecast underspend to £1.288 million.
Councillor Eddie Lavery, Cabinet Member for Finance, presented the report, highlighting the council's continued progress in managing its budget effectively. Beyond the reported underspend figures, the council's Savings Tracker
is a key metric for assessing budget management effectiveness, monitoring the delivery of new savings. At the end of Period 4, 77.2% by value of those savings were either delivered or on track.
Specific departments are contributing to the projected underspend and identified risks/opportunities. Residents Services is forecasting an underspend of £2.549 million, primarily driven by lower than anticipated demand for Temporary Accommodation and reduced expenditure on PRS Incentives within Housing Needs and Homelessness. Children and Young People's Services and the Chief Operating Officer's department are also forecasting underspends due to staffing costs and vacancies.
Corporate Budgets are projecting a £2.356 million underspend, predominantly due to lower borrowing costs from delayed capital spend and higher interest earnings. However, risks have been identified in Adult Services & Health and Residents Services, largely relating to potential changes in the costs of homelessness support. The Chief Operating Officer's department also faces a risk relating to potential costs of addressing a high level of Subject Access Requests (SARs), while Finance has an opportunity relating to potential savings from the retender of insurance contracts.
Should all identified risks and opportunities materialise, the forecast underspend at year-end would reduce to £1.288 million. The report indicates that the overall forecast position for the General Fund still leaves the budgeted £10 million risk and contingency provision intact by the year end, subject to any further changes. This implies the projected £1.288 million underspend would contribute to this remaining provision, rather than being specifically earmarked for utilization.
Read the full Public reports pack for more details.