- January 22, 2022
- Posted by: Hillingdon Labour
- Category: Latest News
Hillingdon Council “on brink of bankruptcy” due to Conservative mismanagement says Hillingdon Labour
Hillingdon Conservatives have mismanaged the finances of the Council, says Hillingdon Labour. The Council is trying to get a Government bailout so as to avoid bankruptcy. Without the bailout, a section 114 notice could be issued which would have severe consequences for Council services.
There will be a cumulative deficit of £38m by the end of March 2022 in the high needs education budget, which is more than the Council has in general reserves. The current deficit is running at more than £1m each month, the equivalent of about £120 annually for each family in Hillingdon. The Council is now negotiating with the Government to be given money so as to bring down the deficit and avoid having to declare bankruptcy.
This deficit is primarily caused by the Council failing to create enough Special Educational Needs school places, despite many warnings from the Labour Councillors over the years. The Conservative administration ignored warnings, and instead focused on creating too many primary school places that the Borough doesn’t need, wasting millions of pounds.
Labour’s Lead on Families, Health and Wellbeing, Cllr Kerri Prince, said:
“This Conservative administration has crowed about ‘sound financial management’ for years, but now the truth is out. The Conservatives have run the finances into the ground through ignoring the problems in the schools budget.
“The Council is now at risk of bankruptcy because of their poor choices and priorities. The Council is applying for a Government bailout which will come with terms and conditions attached.
“This Conservative administration is a joke and quite clearly a failure.”