Hillingdon Council Finance Chief Goddard Resigns Amid Bankruptcy Risk

Key Points

• Councillor Martin Goddard resigns from Hillingdon Council Cabinet as Finance Member, effective immediately.
• Goddard announces he will not stand in the 2026 elections and steps down before then.
• Councillor Eddie Lavery set to replace Goddard as Cabinet Member for Finance.
• Goddard pulls out of Audit Committee meeting scheduled for 18 November amid financial scrutiny.
• Hillingdon Council faces intense financial pressures and is currently negotiating Exceptional Financial Support (EFS) with the government.
• Over £1 million in payments to Grant Thornton, former employer of Goddard, uncovered since his Cabinet appointment.
• No evidence of wrongdoing by Goddard, but opposition raises concerns about transparency and conflict of interest.
• Labour Group voices motion of No Confidence citing failure to deliver £34m savings and depletion of reserves.
• Council risks entering Section 114 bankruptcy status by February 2026 without government bailout.

What led to Councillor Martin Goddard’s resignation from the Hillingdon Council Cabinet?

As reported by Philip Lynch of the Local Democracy Reporting Service (LDRS), Councillor Martin Goddard, Cabinet Member for Finance at hillingdon/hillingdon-council/">Hillingdon Council since 2021, resigned from his Cabinet position with immediate effect. Goddard informed colleagues he would not stand for election in 2026 and chose to leave the Cabinet before the upcoming elections. He currently represents the Ickenham and South Harefield ward.

This decision came right after Goddard unexpectedly withdrew from attending an Audit Committee meeting on 18 November, where he was expected to face scrutiny regarding the council’s financial circumstances and decision-making. The following day, he officially announced his resignation, heightening speculation about the council’s ongoing financial crisis.

What financial challenges is Hillingdon Council currently facing?

Hillingdon Council is under severe financial strain, with growing concerns that it could face bankruptcy by early 2026 without external assistance. The council is engaged in discussions with the government to secure Exceptional Financial Support (EFS), signalling a critical risk to its financial stability.

Council Leader Ian Edwards commented on the situation, as reported by Philip Lynch of LDRS, stating:

“Cllr Goddard’s decision to step down from politics is a blow as he is a man of great experience, capability and integrity. Whilst he can look back with pride on his Cabinet service, I must look forward and take steps to ensure the smooth succession of our financial oversight.”

Edwards emphasised that the timing was appropriate for change ahead of budget preparations, thanking Goddard for his stewardship “in the most challenging of times for the council and local government.”

Who will replace Councillor Goddard as Cabinet Member for Finance?

Following Goddard’s resignation, Councillor Eddie Lavery is set to take over the finance portfolio. Lavery previously oversaw the controversial closure of the Rural Activities Garden Centre in Hillingdon, a decision reported by MyLondon.

What controversies surround Councillor Goddard’s financial oversight?

In June, Philip Lynch of the Local Democracy Reporting Service revealed over £1 million in payments had been made by Hillingdon Council to Grant Thornton, the former employer of Goddard. These payments occurred predominantly after Goddard’s appointment to Cabinet in 2021, contrasting sharply with just one payment of £70,000 made in the six years prior.

Though there is no evidence that Goddard declared his previous employment with Grant Thornton as an interest—and no formal requirement to declare past employment unless a conflict exists—this raised concerns about transparency among opposition councillors.

The Local Government Association Model Code specifies that councillors must not participate in discussions or votes on matters related to financial interests of close associates and should declare such interests. Goddard insists he holds no personal or financial interest in the company.

How has Goddard’s tenure impacted the council’s financial situation?

Councillor Goddard led the launch of a modernisation programme aimed at addressing financial challenges within the council. However, the programme has been plagued by delays, complicating efforts to stabilise Hillingdon’s finances. Local Democracy Reporting Service sources indicate that without central government support, the council risks entering Section 114 status (bankruptcy) by February 2026.

How has the opposition responded to the council’s financial troubles and Goddard’s resignation?

Cllr Stuart Mathers, Leader of the Hillingdon Labour Group, criticised the council leadership in a statement reported by Philip Lynch (LDRS). He recalled that Labour tabling a motion of No Confidence in both Council Leader Ian Edwards and Cabinet Member for Finance Martin Goddard during the September full Council meeting.

Mathers said:

“The Leader’s statement is disingenuous; it has long been known that Cllr Goddard would not stand in May 2026. His departure from Cabinet reflects their failure to deliver £34 million of in-year savings and his oversight of the depletion of £70 million in reserves, leaving the Council effectively bankrupt and reliant on Exceptional Financial Support from the Labour Government just to keep the lights on.”

He further insisted it was time for Council Leader Edwards “to accept responsibility for his own failed leadership.”