The Audit, Finance and Performance Committee of Hillingdon Council met on Wednesday 5 August 2026 to review the council's financial monitoring report for Period 2 (May 2026/27). The committee also discussed the forward plan and work programme, with a significant portion of the meeting dedicated to proposals for enhancing the committee's scrutiny functions.

Period 2 Financial Monitoring Report

The committee reviewed the Period 2 Financial Monitoring Report for 2026/27, which detailed the council's financial performance at the end of May. The General Fund was forecasting a net £584,000 overspend for the year, with additional risks and opportunities amounting to nearly £2.8 million. This position was offset by a £10 million risk and contingency provision. Progress on delivering savings was reported as 61% on track or delivered, a favourable comparison to the previous year.

Key points from the financial monitoring report included:

• General Fund Revenue: A net £584,000 overspend was forecast, with specific pressures identified in Adult Services & Health (£870,000 overspend), Chief Operating Officer (£926,000 overspend), Finance (£760,000 overspend), and Chief Executive's Office (£577,000 overspend). Conversely, Residents' Services showed a forecast underspend of £2,196,000.
• Savings Tracker: Of the £27.09 million in savings being monitored, 33% were marked as delivered and 28% as on track. However, 33% were identified as at risk.
• Fees and Charges: Proposals were put forward to increase fees for filming in the borough to align with market rates and to amend fines for specific environmental offences. Authority was also sought to delegate the approval of a new policy for civil penalties under the Renters' Rights Act 2025.
• Grant Funding: The committee was asked to approve the acceptance of £2.58 million in additional grant funding from the Department for Education (DfE) to support preventative services for children and families, and £449,000 in Planning Gift Funding.
• Capital Programme: The General Fund Capital Programme was forecasting a £6.97 million underspend, partly due to the Hillingdon Water Sports Facility roll-forward not being required. The Housing Revenue Account Capital Programme was forecasting spend to budget.

Councillor Tony Eginton raised concerns about the reporting of figures, particularly the presence of zeros in the budget for the Chief Operating Officer's areas for the first two months. He also questioned the timing of the committee's review of reports, noting that they were often considered after Cabinet had already made decisions.

Enhancing Scrutiny Functions

A significant portion of the meeting was dedicated to proposals aimed at strengthening the committee's scrutiny and oversight functions. Councillor Henry Higgins, Chair of the meeting, presented twelve recommendations designed to improve the committee's effectiveness. These recommendations focused on enhancing the detail and transparency of financial reporting, strengthening the savings tracker, and improving accountability.

Key recommendations included:

• Monthly Budget Monitoring Reports: To include movement from previous month columns for each directorate and major budget line, restoring a format used in 2020 to identify in-year drift.
• Defined Reserves: To adopt defined reserves floor and ceiling as a formal policy, with any breaches flagged for explicit Cabinet member comment.
• Delegated Authorities: To report on delegated authorities exceeding an appropriate threshold, updated for inflation, back to the committee.
• Development Contributions: To reinstate quarterly monitoring reports for Section 106 and Section 278 agreements.
• Savings Tracker: To ensure savings are only marked as delivered with specific evidence, that senior officers are named as accountable owners, and that amber and red rated savings have backstop savings identified.
• Training: To arrange higher-level financial training for committee members and to explore options for external training.

The committee discussed the need for greater transparency and accountability in financial reporting and savings delivery. There was a general consensus that the committee needed to be more proactive in its scrutiny role, particularly in light of the council's financial position.

Forward Plan and Work Programme

The committee also reviewed the Cabinet's Forward Plan, which outlines future key decisions. Members noted upcoming items relevant to their remit, including the monthly council budget monitoring report and the council's insurance contracts.

The committee's work programme was also discussed, with a focus on establishing the foundations for effective scrutiny in the coming year. The Chair, Councillor Henry Higgins, indicated that while he was acting as temporary chair, his aim was to ensure the committee had a clear structure and robust processes in place.

The meeting also touched upon the council's digital transformation efforts, with questions raised about specific projects and the overall approach to implementing digital solutions. The departure of Matthew Wallbridge, Chief Operating Officer, was noted, and clarity was sought on who would be taking over his responsibilities.

The committee agreed to pass the recommendations for enhancing scrutiny functions to Anisha Teji, Senior Democratic Services Officer, for typing up and circulation. The need for improved financial training for committee members was also highlighted.