The Hounslow Council Cabinet met on Tuesday 10 February 2026 to discuss and approve the Budget for 2026-27, which included a Council Tax requirement of £158.437 million, representing a 4.99% increase. The Cabinet also approved the renewal of the Inter-Authority Agreement with HB Public Law for legal services and the admission arrangements for community schools for 2027-2028.

The Cabinet meeting covered a wide range of topics, including the approval of the Budget 2026-27 report, which recommended a 4.99% increase in Council Tax. This increase is comprised of a 2% Adult Social Care precept and a 2.99% general increase. The budget also included £26.1 million in savings proposals for 2026/27, alongside an additional £21.3 million in funding from the provisional local government finance settlement due to the Fair Funding Review 2.0. The Cabinet also approved the Housing Revenue Account (HRA) budget for 2026/27, which included a savings programme of £1.5 million for 2026/27 and £1.4 million for 2027/28.

In addition, the Cabinet approved the renewal of the Inter-Authority Agreement with HB Public Law for legal services for a five-year period, with break clauses at years 2, 3, and 4. They also agreed to delegate the agreement of the contract terms to the Director of Law and Governance. The Cabinet also approved the admission arrangements for London Borough of Hounslow Community Schools for 2027-2028, which included updated published admission numbers for several schools.

Other key decisions included the approval of the Lampton Group Business Plan 2026-2029, which aims to achieve financial sustainability and operational efficiency. The Cabinet also authorised officers to commence procurement for the retendering of Adults Homecare services, with an estimated eight-year budget of £120 million. Furthermore, the Cabinet approved the allocation of Strategic Community Infrastructure Levy (CIL) funds totalling £3,663,000 for infrastructure projects and £1,016,759 for projects delivered by external partners. The 2024/25 Infrastructure Funding Statement, detailing CIL and Section 106 funds, was also endorsed.

The Cabinet also noted the financial monitoring update for Quarter 3 2025/26, which indicated a forecast General Fund revenue budget overspend of £6.8 million, and a net nil variance for the Housing Revenue Account (HRA). The Dedicated Schools Grant (DSG) position showed a forecast overspend of £0.2 million against a budgeted deficit of £4.2 million. The capital programme forecast position showed an in-year variance of £19.8 million for the General Fund and £15.2 million for the HRA. The meeting concluded with the noting of the date of the next meeting.

Budget 2026-27

The Cabinet approved the budget for 2026-27, which includes a Council Tax requirement of £158.437 million. This represents a 4.99% increase on the previous year, comprising a 2% increase for the Adult Social Care precept and a 2.99% general increase. The budget also incorporates £26.1 million in savings proposals for 2026/27 and £5.2 million for 2027/28. Additionally, the Council will benefit from an additional £21.3 million in funding from the provisional local government finance settlement due to the Fair Funding Review 2.0.

The Cabinet also approved the Housing Revenue Account (HRA) budget for 2026/27, which includes a savings programme of £1.5 million for 2026/27 and £1.4 million for 2027/28. The HRA Business Plan update for 2026-27 was also approved, outlining a plan to increase HRA reserves to 15% of rent turnover over the next five years.

Hounslow Companies Business Plan 2026-27

The Cabinet approved the Lampton Group Business Plan for 2026-2029. This plan aims to enhance operational efficiency, financial sustainability, and customer focus across the Group. It projects the Group to break even in 2026/27 and move into profit in the following two years, with projected profits of £500,000 in 2027/28 and £1 million in 2028/29. The plan also highlights the continued focus on strengthening governance, improving service delivery, and developing staff.

Hounslow Homecare Procurement

The Cabinet authorised officers to commence procurement for the retendering of Adults Homecare services. This statutory service, which supports adults in their own homes, has an estimated eight-year budget of £120 million over a five-year contract term with an option to extend for a further three years. The procurement will seek to secure 12 providers operating across the entire borough, with a flat hourly rate set by the Local Authority. This model aims to ensure service resilience, capacity, and choice for residents, while also supporting joint working with the Integrated Care Board (ICB).

Housing Revenue Account (HRA) Business Plan Update 2026-27

The Cabinet approved the HRA savings programme for 2026/27 and 2027/28, which is projected to deliver £3 million in savings. This programme is crucial for safeguarding existing revenue and capital spending plans, including the Estate Investment Programme and new build schemes. The Cabinet also approved the revised Council House Building capital programme, which includes re-phasing and budget virements, and the proposed Estate Investment Programme for 2026/27 to 2030/31. Furthermore, the Cabinet noted the maximum available HRA borrowing headroom of £166 million over the next 15 years to support future capital investment and the plan to increase HRA General Reserve to 15% of rent turnover by 2030/31.

Financial Monitoring Update - 2025-26 Q3

The Cabinet noted the Quarter 3 financial position, which forecasts a £6.8 million overspend on the General Fund revenue budget. This is an improvement of £3.7 million compared to Quarter 2. The Housing Revenue Account (HRA) and Dedicated Schools Grant (DSG) positions forecast net nil variance and an overspend of £0.2 million respectively. The capital programme forecasts an in-year variance of £19.8 million for the General Fund and £15.2 million for the HRA. The report also noted that £715,000 in bad debts were written off under delegated authority.

Child and Adolescent Mental Health Services (CAMHs) Tier 2 - Contract Award

The Cabinet approved the direct award of a contract to West London NHS Trust for the delivery of Child and Adolescent Mental Health Services (CAMHS) Tier 2. This contract will run from 1st April 2026 to 31st March 2029, with an optional two-year extension to 31st March 2031. The annual contract value is £618,354, with a total potential lifetime value of £3,091,770. This service provides early intervention for children and young people's mental health, aiming to prevent escalations into crisis support.

Approve the Strategic CIL allocations and endorse the Infrastructure Funding Statement 2024-25

The Cabinet approved the allocation of Strategic Community Infrastructure Levy (CIL) funds totalling £3,663,000 for infrastructure projects within the Council's capital programme and revenue budget. This includes funding for projects such as the Brentford Fountain Leisure Centre design, Pavement Pledge improvements, flood defence works, and active travel initiatives. Additionally, £1,016,759 was approved for infrastructure projects to be delivered by external partners, including health facilities, cricket provision, and park improvements. The Cabinet also endorsed the 2024/25 Infrastructure Funding Statement, which details developer contributions collected and spent.

Renewal of Inter-Authority Agreement with HB Public Law

The Cabinet approved the renewal of the Inter-Authority Agreement with HB Public Law for the provision of the Council's legal services. The contract will be for a five-year period, with break clauses at years 2, 3, and 4, allowing for partial or complete termination of the agreement. This decision aims to ensure continuity of legal support while providing flexibility for future review and potential alternative service delivery models. The Director of Law and Governance was delegated authority to agree the contract terms.

Admission Arrangements for London Borough of Hounslow Community Schools for 2027-2028

The Cabinet agreed and adopted the admission arrangements for community schools for the 2027-2028 academic year. These arrangements outline the criteria for school admissions, including priority for looked-after children, siblings, children of staff, and distance to the school. The report also detailed the application process, timelines, and procedures for appeals and in-year admissions.

Exempt Appendices

The Cabinet noted the submitted exempt appendices relating to the Housing Revenue Account (HRA) Business Plan update 2026-27 and the Renewal of Inter-Authority Agreement with HB Public Law. These appendices contained exempt information as defined in Schedule 12A of the Local Government Act 1972, relating to financial or business affairs, and legal professional privilege.

Date of Next Meeting

The date of the next Cabinet meeting was noted as Monday, 19 March 2026, at 7 pm.