Hillingdon Council Relying on £150m Support Amid Finance Risks

Council Report with money below it
Hillingdon Council is "heavily reliant" on £150m in emergency government support, a new report reveals

Hillingdon Council has become “heavily reliant” on emergency government support following years of weak financial management and a failure to meet savings targets, a new report reveals.

The external assurance review by Chartered Institute of Public Finance and Accountancy highlights that Hillingdon has requested £150 million in Exceptional Financial Support (EFS) across two years, including £88 million for 2025-26 and £62 million for 2026-27.

This emergency funding is intended to cover in-year budget deficits and replenish general reserves, which were “virtually extinguished” after an overspend of £31.5 million in 2024-25.

The report warns that EFS is only a temporary measure and that Hillingdon’s plan to fund these amounts through borrowing will compound the problem by requiring repayments over the next 20 years.

A “culture of weak financial management and governance” has been identified within the authority. Internal auditors issued a ‘no assurance’ opinion for 2024-25, citing poor data quality and limited senior management capacity.

In June 2025, external auditor Ernst & Young (EY) issued a Section 24 notice, raising urgent concerns regarding financial planning, forecasting, and the “resource intensive” implementation of the Oracle Fusion finance system.

Additionally, the council’s draft accounts for 2024-25 were not completed by the statutory deadline and are expected to be disclaimed.

Hillingdon’s financial fragility is partly attributed to a decade-long freeze on council tax between 2009-10 and 2018-19.

Current council tax levels remain 14.5% lower than the average for outer London boroughs — a disparity that equates to £26.6 million in lost annual income.

The council also has a “poor record” of delivering savings. In 2024-25, only 32% of proposed savings were achieved. To balance the 2026-27 budget, the authority now requires 100% delivery of a £21.1 million savings programme.

The report notes that Hillingdon currently lacks a published corporate strategy, a council-wide transformation policy, and an asset management strategy.

Inspectors recommend that the council:

  • Immediately explore all savings options, including those that are “politically challenging,” with the Cabinet.
  • Formally agree the terms of a new Improvement Board to provide external challenge and oversight.
  • Review the approved capital programme to defer or remove schemes to reduce revenue costs.

The full report can be read online at https://www.gov.uk/government/publications/hillingdon-council-external-assurance-review-2026-27