Hillingdon Council must find £48 million to avoid Section 114 notice
Council faces a £45 million shortfall, a £173 million loan ending in 2027 and plans steep parking fee hikes and bin removals to stay solvent
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Hillingdon Council told residents on 3 November 2026 that it must secure £48 million in savings and set aside an additional £10 million to bridge a £45 million funding gap identified in its Medium Term Financial Strategy. The council received a government loan of roughly £173 million, but the loan is scheduled to end in 2027. If the loan is not renewed, auditors said the council could be forced to issue a Section 114 notice, effectively declaring it cannot meet its financial obligations.
Why the shortfall matters
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The shortfall sits on top of the £48 million savings the council already plans to achieve in the 2027/28 financial year. The loan has allowed £40 million to be placed back into depleted reserves, yet the council’s cash position remains fragile. The Dedicated Schools Grant (DSG) accounting override also expires in 2028, leaving a remaining debt of between £7.7 million and £10 million that will fall to officers unless a reserve is created.
Planned savings measures
Council officers outlined a package of cost‑cutting actions. Parking charges will increase by 70 percent, a move expected to generate a significant portion of the required savings. All dog‑poo bins will be removed, eliminating the associated collection costs. Additional measures include renegotiating private care contracts, reducing emergency hotel stays for temporary housing, and tightening internal spending controls so that every new hire and supplier contract must pass a spending board.
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If we don't deliver to those higher margins, we won't get out of Exceptional Financial Support.
Pete Carpenter, Deputy Section 151 Officer
Next steps for the council
The council will publish a provisional budget in the coming weeks that will detail how the £48 million savings will be allocated across departments. Residents will be consulted on any changes to services that may result from the fee increases. The Audit, Finance and Performance Committee will continue to monitor the financial plan and report back to the full council before the end of the 2028/29 financial year.
Questions this report answers
+What is the size of the funding shortfall the council faces?
The council has recorded a £45 million funding shortfall in its Medium Term Financial Strategy. This gap must be closed by the end of the 2028/29 financial year, on top of the £48 million savings already planned for 2027/28.
+When does the government loan to Hillingdon Council end?
The loan of approximately £173 million provided by the government is set to run out in 2027. Auditors warned that without further support after that date the council could be forced to issue a Section 114 notice.
+What specific savings actions will affect residents?
The council will raise parking fees by 70 percent and will remove all dog‑poo bins. Both measures are part of a broader plan that also includes renegotiating care contracts and tightening spending approvals, all aimed at delivering £48 million in savings.
+What happens if the council cannot meet its financial targets?
External auditors told the Audit, Finance and Performance Committee that failure to meet the targets could leave the council without reserves, prompting a Section 114 notice. That notice would legally signal that the council cannot meet its spending obligations.
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