A West London local authority has confirmed plans to increase council rents, council tax and a range of local fees and charges as part of a £21 million savings and income generation programme for the 2026/27 financial year, aimed at stabilising its finances and avoiding the need to issue a statutory Section 114 notice, The WP Times reports.
A West London council has approved a comprehensive budget for the coming financial year that combines higher charges for residents with cost-saving measures, significant capital investment plans and changes to the way certain services are delivered. The package, which amounts to £21 million in savings and additional income, forms part of a wider effort by the authority to respond to ongoing financial pressures and to avoid the prospect of issuing a Section 114 notice.
Under the proposals, council tenants will see their weekly rents rise by 4.8 per cent from 1 April 2026. Tenant service charges, which cover the cost of services such as communal cleaning, lifts and grounds maintenance, will increase by 3.8 per cent over the same period. The council says these figures are in line with the national rent-setting regime for social landlords and reflect the increasing cost of managing and maintaining its housing stock.
In addition to rent rises, the council has also agreed to increase council tax by 4.99 per cent. This is the maximum rise that local authorities in England can implement without holding a local referendum. The increase includes the adult social care precept, a levy that councils are permitted to charge to help fund services for older and vulnerable residents. According to the council’s budget papers, most local fees and charges will also rise by approximately 10 per cent. These include parking charges, garden waste collection fees and a range of regulatory fees such as those applied to Houses in Multiple Occupation (HMO) licensing.
The council forecasts that changes to parking tariffs alone will generate around £1.23 million in additional income during the 2026/27 financial year. Among the specific changes agreed by councillors are new charges at overflow car parks at Ruislip Lido, Willow Lawn and Breakspear Crematorium, where drivers will be required to pay £3.80 for up to three hours’ parking between September and April. At the same time, the council has removed the multiple daily free parking sessions that were previously available to residents holding a Hillingdon First Card, meaning that some residents will now need to pay for parking more frequently.
The annual green waste collection fee, which applies to the collection of garden waste, will increase from £70 to £77 – a 10 per cent rise. The introduction of the green waste charge was originally ruled out by the council’s Conservative administration during the 2022 local election campaign, but was subsequently implemented and is now being increased under the latest budget proposals.
The council has also agreed revisions to its licensing arrangements for HMOs. Under the new arrangements, landlords applying for a new HMO licence will pay a fee of £1,401. However, the renewal fee for existing licences will be reduced from £1,577 to £725. The authority says the changes are intended to balance the cost of administering and enforcing the licensing regime with the need to encourage landlords to remain compliant.
One of the most significant service changes contained in the budget affects transport provision for children and adults with Special Educational Needs and Disabilities (SEND). Instead of commissioning private taxis or minibuses in every case, the authority will expand its use of Personal Transport Budgets. This means eligible individuals aged 16 and over can arrange their own transport, with the council providing a defined budget to support this. According to the council’s budget documents, this change is expected to save £387,000.
The council’s equality impact assessments, published alongside the budget proposals, acknowledge that the combined effect of higher charges and the ongoing shift towards digital service delivery is likely to disproportionately affect certain groups, including older residents, disabled adults and women. The assessments state that these groups may face additional challenges in adapting to digital access and increased costs. To mitigate these impacts, the council says it will provide additional support to help residents access digital services and will invest in preventative, early-intervention support delivered through voluntary and third-sector organisations.
Alongside the savings measures and higher charges, the budget includes significant capital investment commitments. Over the next five years, the council plans to spend £194.5 million on improving council-owned housing. This programme of work will include the replacement or refurbishment of kitchens, bathrooms, roofs, windows and heating systems. A further £34.9 million has been allocated specifically to improve the energy efficiency of council homes and to address fuel poverty among tenants, in line with government and local environmental objectives.
Adult social care will also receive targeted investment. An additional £20 million has been set aside over the next two years for the Burroughs Care Home scheme. The scheme forms part of the council’s broader adult social care strategy, although exactly how the additional funding will be deployed within the scheme has not yet been detailed in the publicly released budget papers. The budget also includes expenditure to support infrastructure and community facilities. This includes £2 million for highways improvements across the borough, £462,000 for works at the Beck Theatre, and £50,000 for improvements to the council’s parking services.
The largest single saving identified in the budget stems from a plan to reduce the council’s reliance on expensive bed and breakfast accommodation for temporary housing. By allocating 400 council homes to households currently living in bed and breakfast settings, the authority estimates it will save £2.76 million. The council says this measure will both reduce costs and provide more stable accommodation for families.
The council says the budget has been set against a backdrop of significant financial pressure. In recent years local authorities across England have experienced rising costs attributable to demand for social care, waste and housing services, while government funding settlements have not kept pace with inflationary pressures and increasing expenditure. The council is currently awaiting a decision from central government on potential financial support. Without additional assistance, it says it faces the risk of issuing a Section 114 notice. Under the Local Government Finance Act 1988, a Section 114 notice must be issued by a council’s chief finance officer if they believe the authority is unable to meet its expenditure commitments. Once issued, all non-essential spending must cease, and the council must produce a plan to restore financial balance. Several councils across England have issued Section 114 notices in recent years amid similar financial challenges.
In setting the budget, the council said it had sought to strike a balance between financial sustainability and the protection of essential services. It confirmed that statutory services, including social care, safeguarding and waste collection, will continue to be prioritised, and that it will continue to monitor its financial position closely. Despite the measures agreed, the council’s budget papers acknowledge that financial uncertainty remains, particularly in the absence of a confirmed government support package. The authority has said it will provide further updates once a decision is received from ministers regarding potential assistance.
Read about the life of Westminster and Pimlico district, London and the world. 24/7 news with fresh and useful updates on culture, business, technology and city life: How to vote in Westminster London local elections 2026: deadlines and voter ID rules – full guide UK
