A report by the Chief Financial Officer for the council states that issuing a Section 114 Notice – councils technically can’t go bankrupt but issuing a section 114 Notice is effectively this because it means it cannot commit to any new spending – is a ‘possibility’ following years of declining reserves, overspending, and under saving.
Hillingdon Council ‘must deliver’ £34 million in savings outlined in its budget this year or face the possibility of declaring bankruptcy due to reserves reaching a critical position.
The report states: “Government will be reluctant to provide exceptional financial support mid-year, and therefore were the authority to be in a position where its outgoings were to exceed its income there is a possibility that a S114 Notice would need to be issued.”.
Hillingdon Council has been an authority that prides itself on low taxes and charges for residents, something the report describes as ‘contributing to financial challenges’.
In December 2024, the Council Leader told the LDRS that Hillingdon is in a ‘sound’ position financially, and ‘not at risk’ of issuing a Section 114 notice.
