'Serious concerns' over Hillingdon's finances

The government has said it has "serious concerns" about Hillingdon Council's finances after issuing the west London borough with a notice to improve.

The Ministry of Housing, Communities and Local Government (MHCLG) said it had issued the Best Value Notice because of "serious concerns about the council's financial sustainability and resilience".

It said this followed its "prolonged… reliance on Exceptional Financial Support (EFS)" and because of "serious concerns about financial management [and] governance" at the council.

A spokesperson for the council said it would "continue to work constructively with government" to get Hillingdon "on a stable and sustainable footing for the future".

A Best Value Notice is issued when the government thinks a council has not been meeting its duty to deliver the best value to residents.

A spokesperson for the Conservative-run borough said: "This Best Value Notice reflects the financial challenges the council has been working through during recent months.

"We have never shied away from the difficult decisions needed to restore the council's finances, and we won't start now."

They added that the notice would "not take powers away from the council or affect the day-to-day services residents rely on".

Hillingdon Council will now need to provide MHCLG with regular progress updates until the notice is reviewed in 12 months' time. If it does not make improvements, it could face more intervention from the government.

The Labour MP for Uxbridge and South Ruislip, Danny Beales, said that the "fact that people in Hillingdon work hard, pay their council tax, and are met with poor services and an administration that has been proven to be financially unsound is a disgrace".

He added: "The Best Value Notice is an important intervention by this Labour government to deliver meaningful change.

"This must serve as a much-needed wake-up call to Hillingdon Council that their approach of business as usual, and rearranging deckchairs whilst the Titanic sinks, is failing residents and will not be allowed to continue."

Hillingdon's financial position was described as "critical" in an annual report by the council's independent auditors, Ernst & Young, published in February, and council documents show that the borough expects to overspend by £584,000 in its general fund by the end of this financial year.

The council has applied for EFS for two years running and has so far used £145m of the £150m that government ministers had agreed.

EFS is where central government gives councils that are experiencing extreme financial pressures permission to use borrowing, or their capital budgets (which usually fund buildings and equipment) or the sale of assets to fund some of their day-to-day spending.

The number of London boroughs requiring EFS has risen in recent years.

This year, nine councils in the capital were granted EFS requests by the government, including Barnet, Croydon, City of London, Haringey, Havering, Hillingdon, Lambeth, Redbridge and Waltham Forest.

Another London borough - Newham - which was issued with a Best Value Notice last year - has had that notice extended by MHCLG this week for another six months.

The notice was first issued in May 2025 over what government ministers referred to at the time as "value for money weaknesses around the council's governance arrangements" and concerns over Newham's delivery of social housing.

In a letter to the east London borough on Wednesday, MHCLG said Newham had shown "clear progress in strengthening leadership, governance and financial management", but added that "many improvements remain at an early stage and must be underpinned by long-term stability."

The new Labour executive mayor of Newham, Forhad Hussain, who was elected in May 2026, said the council had "undergone significant change and improvement" over the past year and had made "real progress towards a more sustainable and transparent approach to overcoming the financial challenges we're facing."

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