URL: https://modgov.hillingdon.gov.uk/ieDecisionDetails.aspx?ID=3385

Decision Maker:

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: Yes

Purpose:

Content: RESOLVED:   That Cabinet:   1)    Note the budget monitoring position and treasury management update as at July 2025 (Month 4) as set out in Part A of the report, furthermore, noting the actions proposed by officers. 2)    Approve the full release of the Development and Risk Contingency. 3)    Approve the financial recommendations as set out in Part B of this report below:   a.    the introduction of new fees and charges at three of the Council’s heritage sites from Monday 29th September 2025, as set out in the report and Appendix B1, be approved; b.    the forward phasing of the HRA Acquisitions budget related to the Madison Brook contract of £32.885m from 2026/27 into 2025/26, be approved; c.    a grant of £198,462 from Northwest London Integrated Care Board to deliver a Serious Youth Violence counselling pilot be accepted and authorisation granted to the Corporate Director of Children's Services to sign the necessary contract and make any other decisions to deliver the service within the grant funding available.   Reasons for decision   The Cabinet Member for Finance and Transformation reported on the budget monitoring position for months three and four, noting that monitoring procedures had been carried out for both months despite there being no Cabinet meeting in August.   It was advised that within the General Fund, a further overspend of £1.9 million since month two had occurred, taking the projected overspend for the full 2025/26 financial year to £18.3 million. In the absence of a capitalisation direction from the Government department, this would result in an overdrawn reserves position of £16.8 million. The main elements of the overspend included increased interest costs, higher agency staffing costs and increased demand in services. These pressures were partly offset by reductions in projected spend in Adult Services and Health and in the Place Directorate.   The Cabinet Member further reported that £24.8 million (64%) of the £38.6 million General Fund savings target had been delivered or was on track. General Fund capital expenditure was projected at £137.7 million, with a £1.9 million adverse variance and a £20.8 million underspend, most of which expected to be rephased. The Housing Revenue Account remained on budget, with capital spend forecast at £183.1 million, £32.8 million above budget due to successful additional housing acquisitions delivering 200 extra units through the Madison Brook contract. The Dedicated Schools Grant was projected to break even at £12.5 million for 2025/26, an improvement of £2.5 million on the previous year, with a cumulative deficit of £78.1 million.   The Cabinet Member referred to the recommendations set out in the report, including other financial related matters, such as the approval of new fees and charges at three of the Council’s heritage sites, approval to forward phase the Housing Revenue Account capital overspend and acceptance of a Children’s Services grant from the North West London Integrated Care Board.   Cabinet, therefore agreed to note the latest financial position, agreed the full release of the Development and Risk Contingency and made the other financial decisions as set out in the report.   Alternative options considered and rejected   None   Relevant Select Committee Corporate Resources & Infrastructure Expiry date for any scrutiny call-in / date decision can be implemented (if no call-in) Cabinet’s decisions on this matter can be called in by a majority of the select committee by 5pm, Friday 26 September 2025. If not called-in by then, Cabinet’s decisions can then be implemented. Officer(s) to action Steve Muldoon, Corporate Director of Finance Directorate Finance Classification Public - The report and any background papers relating to this decision by the Cabinet are available to view on the Council's website or by visiting the Civic Centre, Uxbridge  

Date of Decision: September 18, 2025