Hillingdon Council approved its 2026/27 budget on Thursday 26 February, setting out a balanced, forward‑looking plan despite some of the toughest financial pressures local government has faced in decades.
The council continues to prioritise residents by protecting and modernising excellent frontline services, while keeping council tax lower than neighbouring authorities and more than £300 below the national average. The budget reflects disciplined financial management, a strong plan for the future, and a relentless focus on value for money.
During the past decade, Hillingdon’s population has grown by more than 10 per cent, increasing demand for adult and children’s social care and housing support. These challenges have been intensified by high inflation and market volatility, while government funding has not kept pace. The borough also faces unique pressures linked to Heathrow Airport, including asylum costs, anti‑social behaviour and illegal parking for which the council does not receive adequate funding.
The council has consistently challenged this underfunding. The recent new funding settlement recognises Hillingdon has been under‑resourced for many years and will receive fairer funding in the future. However, because the uplift is being phased across three years, the borough will receive £65 million less than its assessed need during the next two years. Full funding will not arrive until 2028/29, leaving a significant short‑term gap. To manage this responsibly, the council has had to account for this in its application for Exceptional Financial Support.
Despite this, Hillingdon has produced a sustainable budget that continues to invest in essential services and infrastructure. Between 2026/27 and 2030/31, up to £268.5 million will be invested in services and facilities, alongside £519.4 million for regeneration and housing.
For 2026/27, council tax will rise by 2.99%, with an additional 2% adult social care precept. This sets Band D at £1,534.95—around a £1.40 per week increase—still lower than neighbouring authorities and well below the national average.
Cllr Eddie Lavery, Hillingdon Council’s Cabinet Member for Finance and Transformation, said: “The council has shown leadership through a decade of underfunding while keeping taxes low and delivering first class services.
“Although the Funding Review validates the council’s long‑standing concerns, delayed funding leaves major pressures unresolved, including the continued underfunding of asylum and Chagossian costs which places an unfair multi-million-pound tax-like burden on residents.”
