A report released last month by Hillingdon Council’s external auditor has revealed damning concerns regarding the council’s financial stability.
Disclosed in the 17-page PDF document, Ernst & Young made clear that there was “significant deterioration in the council’s financial position”.
The report from Ernst & Young stated: “We are not confident that the council has a clear understanding of its current financial position or that the pace of improvement is sufficient to address the systematic weakness which exists within the council’s financial management and governance.
“We recommend that the council urgently establish a clear understanding of its current financial position, including the extent to which that position has diverged from the assumptions underpinning its 2025-26 budget.”
Figures in the report anticipate that the council reportedly overspent £16.4million against their approved budget for 2025-26.
A spokesperson for Hillingdon Council said: “Soaring demand and costs for services and significant government underfunding have created unsustainable financial pressures for the council, and the government’s Fairer Funding Review recognises that Hillingdon has been underfunded.
“We continue to face an unfair financial burden, with more than £17million in costs incurred linked to supporting former asylum seekers, falling directly on our residents.
“The report was for the period 2023-24 issued in February 2025 and recognised we are already taking proactive steps to address the recommendations in the Section 24 notice. It emphasised the work we had underway prior to the notice being issued.
“These have been designed to strengthen organisational capability, and address the external auditor’s recommendations at a time when the council continues to deliver high quality, low cost services.”
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