Hillingdon Council says it’s facing unprecedented financial pressures due to a variety of factors beyond its control
19:51, 21 Oct 2025Updated 20:00, 21 Oct 2025
Councillor Steve Tuckwell, Cabinet Member for Planning, Housing and Growth, said Hillingdon has “basically run out of money”(Image: Philip James Lynch/LDRS)
A West London council has “basically run out of money” according to one of its cabinet members.
In an interview given to The London Standard, Councillor Steve Tuckwell, Cabinet Member for Planning, Housing and Growth, made the comment on video about Hillingdon Council at a time when the authority is under scrutiny for not declaring bankruptcy.
The council’s Chief Financial Officer (CFO) is responsible for issuing a Section 114 Notice – effectively declaring bankruptcy – if they assess that the council can no longer balance its budget.
The Local Democracy Reporting Service (LDRS) asked Hillingdon Council whether it is the case that the council has run out of money. Hillingdon Council did not answer this specifically, but has previously said the CFO is not minded to issue a Section 114 Notice at this time, as the council is in discussions with the government over a bailout.
Jargon buster
Council documents often contain a lot of jargon which might not make sense. Here’s a list of commonly used jargon, and what it means:
EFS (Exceptional Financial Support): This is a temporary government assistance to councils facing severe financial difficulties. It’s used to avoid bankruptcy, and allows councils to borrow
MHCLG (Ministry of Housing, Communities, and Local Government): This is the national government department of Housing, Communities and Local Government – the department which decides whether to provide EFS to councils
Reserves: Think of the reserves like your savings. It’s the council’s piggy bank of savings in case of a rainy day. If these savings go too low, the council cannot protect itself against difficult financial circumstances, and must issue a Section 114
Section 114: This is a notice issued by the council when it cannot balance its budget, restricting all spending except for essential services – commonly described as bankruptcy. This often means government administrators come in to control council finances, for example in Croydon, and residents can expect to see services cut
Section 151 Officer: This is the council’s Chief Financial Officer who oversees the council’s finances, and maintains the legal power to issue a Section 114
Statement of Accounts: This is a formal and legal document published yearly by councils detailing their financial performance and fiscal position for the preceding financial year
However, the LDRS understands that there is a legal duty upon the Chief Financial Officer to issue a Section 114, regardless of whether the council is in talks over extraordinary financial support, if the council cannot legally balance its budget and if the bailout is not guaranteed.
When a council does issue a Section 114 Notice, all new non-essential expenditure is prohibited. In this case a council may only spend on essential services that protect vulnerable people, statutory services, and existing commitments.
The LDRS asked Hillingdon Council under which legal guidance is the Chief Financial Officer choosing not to issue a Section 114 Notice if the council has in fact run out of money. The council said that “the decision to issue a 114 notice is solely the responsibility of the 151 officer in his professional judgement as enshrined in legislation. It is a not a decision the council can take as an organisation”.
The council argues that it “continues to deliver high quality, value for money services for its residents” against a backdrop of financial pressures caused by immigration and its proximity to Heathrow Airport, years of underfunding by central government and “unprecedented pressures relating to homelessness, children’s and adults social care provision”.
Hillingdon Council has long said that the CFO is not minded to issue a Section 114 Notice as the council are hoping for an EFS bailout.
However, the legislation reads: “The Chief Finance Officer of a relevant authority shall make a report under this section (114) if it appears to him that the expenditure of the authority incurred (including expenditure it proposes to incur) in a financial year is likely to exceed the resources (including sums borrowed) available to it to meet that expenditure.”
Cllr Stuart Mathers(Image: Hillingdon Council)
Cllr Stuart Mathers, Leader of Hillingdon Labour Group, believes this raises further questions about how Hillingdon Council can use the talks for EFS as a reason not to issue a Section 114 Notice, when its own cabinet member says the authority has run out of money, and its own financial reports state the council will be almost £25million overdrawn by March 2026.
He told the LDRS: “The financial position of Hillingdon Council remains tentative and concerning for all. We at Hillingdon Labour have been questioning the financial viability of the council.
“Last week, Cllr Steve Tuckwell in an interview with London Standard claimed the council had already run out of money. If this is the case, then a responsible council administration should be questioning the validity of not issuing a Section 114 notice rather than scapegoating a newly appointed Chief Finance Officer. This Conservative administration is failing Hillingdon Council and the price of this astronomical financial mismanagement will be borne by the residents of Hillingdon.”
Cllr Ian Edwards said in response: “Cllr Mathers’ comments seek to undermine the position of the S151 officer by calling on the council to question his judgement.
“This continued misrepresentation or misunderstanding of the legislation by the opposition shows why they are totally unfit to run this local authority. The legislation is clear, and we refer them to it.”
Residents braced for cuts
In September, the LDRS revealed that the Hillingdon Council may already be bankrupt, with a source close to the council’s finance department arguing that the local authority is simply delaying issuing a Section 114 Notice in hopes of getting EFS. The LDRS understands that Hillingdon Council has now made a formal submission to the government for EFS.
This comes as Hillingdon residents are braced for spending cuts across a range of departments. Hillingdon Council documents indicate that Council Leader, Cllr Ian Edwards, has asked council officers to “review” and “identify” schemes in the capital expenditure programme which can be “deferred, reduced, or stopped”.
Alongside this, council officers have been told to introduce “strict spending controls” across all areas of the council. These measures are expected to reduce the level of non-essential spending.
Hillingdon Civic Centre(Image: Philip James Lynch/LDRS)
It is unclear at this time which non-essential expenditure may be cut, reduced or deferred by Hillingdon Council, as council officers continue to assess schemes which they believe can face a budget reduction.
The report also raises serious concerns about meeting savings targets of approximately £12million. Additionally, the council now forecasts it will be £24.9million overdrawn by May 2026.
The LDRS asked Hillingdon Council how this gap will be plugged if savings are not met, and whether the council holds the view that it is in Section 114 territory. A council spokesperson said: “As the report makes clear, the council, like other local authorities, is facing ongoing and unprecedented pressures relating to homelessness, children’s and adults social care provision.
“It is also seeing exceptional costs as a result of being a port authority, with those costs incurred not fully funded by government, despite lobbying for this repeatedly. Alongside this, the Fair Funding Review recognises that Hillingdon has been significantly underfunded by the government for a number of years.
“Discussions with the Ministry for Housing, Communities and Local Government (MHCLG) relating to securing Exceptional Financial Support continue, with a formal submission already made to the government.”
They added: “The council continues to review all available options to address the current financial pressures, including the delivery of its 2025/26 savings programme and the introduction of further spending controls. Despite these pressures, the council continues to deliver high quality, value for money services for its residents.”
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