Danny Beales

Danny Beales

Labour — Uxbridge and South Ruislip

Speaking in the House of Commons on 26 March 2025

Debate

Local Government Finances: London

Contribution

Last, but not least. It is a pleasure—less of a pleasure now, but it was a pleasure—to serve under your chairmanship, Ms Lewell. I echo the points my colleagues have made about the unprecedented financial pressures on London councils. While we need to tackle temporary accommodation, the SEND crisis and much more—that is as true in Hillingdon as in any other borough—we also need to ensure the very best financial governance for local authorities. Unfortunately, in Hillingdon, on top of those long-term pressures, we have seen short-termism and poor governance. A salami-slice approach to budgeting—taking off an extra per cent each year—and the failure to transform services and build the financial base of the council long term have all come home to roost, with the council now in financial crisis. We have seen that if we do not invest in new homes, we get temporary accommodation pressures. If we do not invest in early years and youth services, and close them instead, we get more pressures later in the education system. That is what has happened in Hillingdon. We have the lowest reserves among our nearest neighbours. The Chartered Institute of Public Finance and Accountancy reported that we ran them down from £62 million in 2021 to £20 million in 2025.

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