A West London council on the brink of financial collapse is set to impose its second consecutive maximum increase in council tax, alongside sharp rises in everyday fees and charges.
Budget crisis forces drastic measures
Hillingdon Council has admitted it cannot legally set a balanced budget without emergency financial support from the government. Despite receiving additional funding through the national Fairer Funding Settlement, the authority says it still faces a significant shortfall and requires Exceptional Financial Support to be approved for at least the next three years.
Without this bailout, the council warns it may be forced to issue a Section 114 Notice, effectively declaring bankruptcy. In response, the Cabinet has approved proposals to raise council tax by the highest amount permissible without a local referendum.
Detailed breakdown of new council tax bills
For the first time, properties in every council tax band will pay over £1,000 annually to Hillingdon Council, excluding the separate Greater London Authority precept. The standard increase of 4.99% will be applied across the board.
The new annual charges for Hillingdon's portion of council tax will be:
- Band A: £1,023.31 (an increase of £48.64)
- Band B: £1,193.85 (an increase of £56.74)
- Band C: £1,364.41 (an increase of £64.85)
- Band D: £1,534.95 (an increase of £72.95)
- Band E: £1,876.06 (an increase of £89.17)
- Band F: £2,217.16 (an increase of £105.38)
- Band G: £2,558.26 (an increase of £121.59)
- Band H: £3,069.91 (an increase of £145.91)
Blanket 10% rise in fees and charges
In a move that will hit residents' pockets further, the council also intends to raise all discretionary fees and charges by 10 per cent. This is the second year such hikes have been implemented in a borough that historically promoted itself as a low-tax area.
The increase will affect a wide range of services, including:
- Parking charges
- Leisure centre entry and membership fees
- Civic and registration charges
This means the controversial green waste collection fee, currently £70 per year, is likely to rise to £77. The combined impact of the tax and fee rises has drawn sharp criticism from opposition councillors.
Councillor Sital Punja, Deputy Leader of Hillingdon Labour, condemned the administration, stating: "Residents are paying the price for Conservative financial mismanagement, with a blanket 10 per cent hike in fees and charges across services. That is 15 per cent in two years and the council is still broke and relying on expensive borrowing to balance the books. This is not sound financial leadership, it’s failure passed onto residents."
The final decision now rests with a meeting of the full council, which is expected to approve the proposals in the coming weeks.
