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Ealing Council

Draft Statement of Accounts

2025/26

London Borough of Ealing

Contents

1. Narrative Reports and Written Statements

1. Narrative Reports and Written Statements Introduction by the Strategic Director of Resources
2. Core Financial Statements Comprehensive Income and Expenditure Statement
3. Notes to the Accounts Index of Notes to the Core Financial Statements
4. Supplementary Accounts and Explanatory Notes Housing Revenue Account
5. Group Accounts Group Core Financial Statements
6. Accounting Policies Accounting Policies
7. Glossary Glossary of Terms
8. Annual Governance Statement Annual Governance Statement

1. Narrative Report and Written Statements

INTRODUCTION BY THE STRATEGIC DIRECTOR OF RESOURCES

The Statement of Accounts sets out the council's financial results for 2025/26 and the position at 31 March 2026.

It is intended that these accounts provide a useful and important source of financial information for residents, stakeholders, council members and other interested parties.

The Narrative Report provides some background and context to the council's financial position in 2025/26; I hope that readers of the council's accounts find this helpful.

I would like to thank my staff and colleagues throughout the council for their hard work and support in producing the accounts for 2025/26.

Emily Hill, CPFA Strategic Director, Resources Date: 30 June 2026

NARRATIVE REPORT

The Narrative Report provides information on Ealing Council (The council), its main objectives and strategies and the principal risks that it faces, as well as providing a commentary on how the council has used its resources to achieve its desired outcomes in line with its objectives and strategies.

The local government sector is navigating a complex landscape of challenges and opportunities. Councils are increasingly focusing on sustainability, digital transformation, and community engagement to enhance service delivery and ensure resilience. However, councils are also grappling with budget constraints, the impact of demographic change on the demand for and complexity of need for social care, the impact of the cost of living on residents, pressures leading to demand for housing, infrastructure and support services, while continuing to address social inequalities.

The council has, like many other authorities during the financial year, faced the on-going increase in demand led services resulting in pressures on the general fund where funding has not kept pace, in addition to the on-going impact of social care demand and complexity, there has been a substantial rise in the need for temporary accommodation adding further strain to the general fund.

Although external factors on demand led services have made the process of setting a balanced budget extremely difficult, the council has continued to ensure that both existing service demands are appropriately funded and where new demand is forecast, proportionate growth has been allocated. The council will continue to explore new ways of working and delivering services that are efficient, effective, and inclusive.

ABOUT EALING

Ealing is London's third largest borough with around 375,000 residents based in the heart of West London and is an attractive area to live in, being home to several landmarks and attractions, such as Ealing Studios, the oldest film studio in the world, Walpole Park, a Grade II listed park with a historic house and museum, and Southall, a vibrant area known as the "Little India" of London.

The borough is also celebrated for its annual Ealing Jazz Festival, attracting music enthusiasts from all over. The borough's diverse architectural landscape includes beautiful Victorian and Edwardian houses, adding to its charm. Notably, Ealing is one of the greenest boroughs in London, with numerous parks and open spaces like Walpole Park and Gunnersbury Park, offering residents and visitors a peaceful retreat from the bustling city life. Furthermore, the borough is extremely well-connected, with 14 tube stations (including 5 Elizabeth Line stations), 2 Overground stations and over 700 bus stops, making it a desirable location for commuters. This combination explains why so many have chosen to build their lives here.

The borough is also hugely diverse, with people from across the world coming to make the borough their home. The borough is home to the largest Punjab and Sikh communities in London, and that diversity is one of its great strengths and contributes to the unique identities of our seven towns – Ealing, Acton, Hanwell, Greenford, Northolt, Perivale, Southall as well as our 24 wards.

ABOUT THE COUNCIL

The council is responsible for providing a range of services to the residents, businesses and visitors such as housing, education, social care, waste management, planning, environmental protection, libraries, parks and leisure.

The council's operational structure reflects the above responsibilities and were reported in 2025/26 under six directorates:

• Children's Services
• Adults and Public Health
• Economy and Sustainability
• Housing and Environment
• Resources
• Strategy and Change

OUR WORKFORCE

The council employed 2,954 people of which the full-time equivalent was 2,756 at 31 March 2026. A breakdown of the make-up of the workforce is detailed below:

Gender

Male 34.1% 34.0%

Female 65.9% 66.0%

Declared Disability

Yes 6% 6.2%

Age

Under 25 2.4% 1.9%

25-39 24.2% 25.5%

40-49 24.8% 24.8%

50-64 42.2% 40.3%

65+ 6.5% 7.5%

Ethnicity

Black and Multi-Ethnic 50.3% 50.4%

White 34.4% 33.4%

Unknown 15.3% 16.2%

2024/25 2025/26

POLITICAL STRUCTURE

The council has 24 wards and has 70 councillors and is Labour controlled. The election on 7 May 2026 returned a Labour administration with councillors being elected for a term of up to 4 years. The political make-up of the council is 46 Labour, 13 Liberal Democrat, 5 Conservative, 5 Green, 1 Independent.

The Cabinet provides the strategic direction and priorities for the council, as well as making key decisions. Cabinet members are drawn from the membership of the majority political group on the council, which is currently the Labour Party.

The cabinet has ten members each having a specific area of responsibility (known as a portfolio) and is accountable for council decision-making. The portfolios are based around the nine priority areas identified in the council plan 2022-26.

THE COUNCIL PLAN 2022-26

The council Plan along with the Medium-Term Financial Strategy (MTFS) comprise the council's key strategic planning framework. The plan will continue to map out an ambitious vision for the borough while managing the challenges faced.

The plan follows the three priorities of:

To meet the cross-cutting objectives the plan sets out the nine priority areas which are overseen by members of the council's cabinet focussing on delivery of the things that matter to residents. One additional promise is set to make sure the council is well-run and works with communities.

GOVERNANCE

The council is responsible for ensuring that its business is conducted in accordance with the law and proper standards, and that public money is safeguarded, properly accounted for and used economically, efficiently and effectively. The council also has a duty under the Local Government Act 1999 to make arrangements to secure continuous improvement in the way in which its functions are exercised, having regard to a combination of economy, efficiency and effectiveness.

The council has approved and adopted a Code of Corporate Governance, which is consistent with the principles of the CIPFA / SOLACE Framework Delivering Good Governance in Local Government 2016. The framework provides a structure to assist authorities in their governance approach, ensuring accountability, transparency and effective decision-making.

The Annual Governance Statement explains how the council has complied with the code and meets the requirements of regulation 6(2) Accounts and Audit Regulations 2015.

The council's Internal Audit service carries out a comprehensive programme of review activity consistent with the Audit Strategy and the Public Sector Internal Audit Standards. The work is based around the core risks faced by the council and includes significant work on the main financial and information management systems, corporate programmes and partnerships. Based upon the programme of work for 2025/26, the Assistant Director of Audit and Investigation's concludes that the council's governance, risk management, and internal control arrangements are effective and support the delivery of statutory duties and strategic priorities.

Further details on this can be found in the Annual Governance Statements (AGS) in Section 8 of the accounts.

PERFORMANCE

COUNCIL

This section presents key highlights of the council's 2025/26 delivery plan. The deliverables are designed to contribute towards the achievement of the overall 4-year goals contained within the council Plan 2022-26. The latest performance update was reported in February 2026 to Cabinet with specific reference to the year-end performance and delivery highlights, Key performance indicators are reported at Q2 due to the timings of reporting.

KEY PERFORMANCE INDICATORS (KPI'S) Q2

A summary of progress towards the 4-year council plan commitments are illustrated below. No annual targets have been set for these commitments, but regular tracking helps ensure that all commitments are delivered over the life of the administration. Cumulative progress since the start of the council plan in 2022/23 is provided, and it is worth noting that most of the 43 four-year goals have been achieved by the fourth year of the council plan.

Where reporting data is not available until Q4, this is shown as N/A in the table. Of the 60 indicators available at the reporting date 33% did not meet their target, while 67% had either met their target or were within tolerance.

Q2 Rating 2025/26

Highlights are presented against the nine council priorities and outlining what has been achieved during 2025/26. The highlights are covered in the Impact Report.

The full performance report can be found in the cabinet agenda papers dated 11 February 2026.

For the indicators that did not meet their targets, the following commentary outlines the reasons and actions to be taken to support achieving the targets.

Fly tips cleared within target time

The second quarter of 2025/26 saw a slight dip in performance on the previous quarter in fly tips that were cleared within the target time (81% in Q2 compared to 84% in Q1), below the target figure of 90%. Fly tipping incidents have increased by around 50% year on year since 2022/23, reflecting trends across London and nationally. The council has adjusted its response target time from 24 hours (2024/25) to 48 hours (2025/26) to reflect the increased demand on council resources. Street services have allocated additional funding and implemented several strategies to tackle fly-tipping in the borough. Four additional teams have been deployed to remove reported and unreported (and therefore unrecorded) fly tips with one of these dedicated to investigating evidence and stepping up enforcement.

A behaviour change pilot is currently underway in priority hot-spot locations where fly tips are being stickered and left for 24 hours to highlight the problem to local communities. The pilot is being carried out in partnership with environmental enforcement contractor APCOA and Greener Ealing waste collections. Furthermore, we have purchased 8 CCTV cameras to be used across the borough to capture evidence and bolster 'This is our home, not a tip' campaign. It explains the impacts of fly tipping and ways residents can help dispose of waste, along with how to report people who are fly tipping. Driven by CCTV footage and enforcement messaging, the campaign saw an exceptional reach on the social media, and has also achieved national and regional media coverage, including TV and radio. Resources allocated to run the campaign and prioritise enforcement have led to a short-term decline in performance, however the intention is to drive a longer-term change in behaviour and reduce the number of fly tipping incidents.

Levels of cleanliness (streets free of graffiti)

88% of the borough's streets were free of graffiti in Q2 2025/26, a slight improvement on Q1 (87%), but below the target of 92%. Underperformance is linked to an increase in graffiti reports, and a proportion of clean-up jobs requiring follow up visits due to scale or specialist requirements, for example matching paint colour, which extends the completion time of removal. The contractors prioritise removal of offensive graffiti and continue working towards the service level agreement where possible. The council is looking at ways of targeting graffiti hotspots across the borough using existing resources.

Adult survey indicators

Among adult social care users who were surveyed, 52.6% of the respondents were satisfied with their care and support and 59.7% felt they had control over their daily life. These results showed a dip in satisfaction when compared to the previous years and were below targets set at 60.0% and 67.5%, respectively. The council is fully committed to deliver its vision of "Connected Communities, Better Lives" and has high aspirations for the people who use social care services. The team are continuing to strengthen and enhance the council's core social care offer and are encouraged by progress made since the 2024/25 survey. The updated continuous improvement plan for 2026/27 includes a dedicated workstream focused on resident experience. This plan aims to deepen the council's connection with residents and respond to the feedback received, with a particular emphasis on equity of access and outcomes. There are also many factors that influence wellbeing, beyond the care services the

council provides. The social care team will work closely with other parts of the council and its partners, in particular with the NHS, to support the wider determinants of health and wellbeing. The council is committed to increase social connection in the borough, giving everyone as much choice and power in their lives as possible – so that people can live happier and healthier lives and get more of what they need from each other. The renewed focus on power and choice should create a more responsive care system, reflect the unique needs of the borough's communities, and improve the experience of users and carers going forward.

Admissions into permanent residential and nursing care (population aged 18-64)

As of Q2 2025/26, there were 17 admissions into permanent residential and nursing care for residents aged between 18 and 64 years old, slightly above the target of 14. Similarly, the rate of admissions was 6.7 per 100,000 population, slightly exceeding the target of 6.1. Placement activity for working age adults has been noted as an area of growing demand and cost, with admissions to residential and nursing care homes for service users rising across England. To address this challenge, complex cases remain in scope for review through the service transformation programme and strengthened review panels.

The proportion of people who use services who receive direct payments

In the second quarter of the year, 9.4% of adult social care service users were receiving direct payments (DPs), below the target of 12.4%. Residents eligible for the direct payments scheme receive money from the council to help pay for their care needs, allowing more control and flexibility to personalise their support. Following extensive training and rebranding of promotional materials, levels of awareness amongst residents about the DP scheme in the borough have increased, resulting in a growing number of referrals. 337 people who use adult social care services were in receipt of direct payments as of Q2 2025/26, an increase from 324 in Q1 2025/26. The council aims to increase the take up numbers during 2025/26 and has developed a comprehensive action plan with additional resources and capacity within the Ealing Direct Team to respond to the growing demand. It is projected that 400 DPs could be delivered by March 2026. Phase 1 of the DP programme is complete and the target for carers has been exceeded, with over 200 one-off carer DPs offered to date. The service is also exploring ways to broaden its DP offer to support social inclusion and extend the community-based support.

The proportion of concluded s42 enquiries where a risk was identified that had the risk removed or reduced

In Q2 2025/26, 83.6% of adult safeguarding enquiries (s42 enquiries) were concluded with the identified risk of abuse or neglect removed or reduced. Whilst the target of 90% has not yet been reached, the service has seen a steady month on month improvement in performance from 80.3% in Q1, following a focused review underpinned by the new safeguarding pathway. It is expected that the target is reached by the year end.

Percentage of EHC plans issued within 20 weeks (excluding exceptions)

Demand in relation to Education, Health and Care (EHC) plan needs assessments continues to rise in line with regional and national trends, leading to backlog pressures across the service. The council has also faced challenges due to national shortages of educational psychologists and delays in receiving health information from NHS partners. Additional targeted investment has been mobilised to address the backlog which has led to improved timeliness of EHC plans being issued. In Q2, 43% of EHC plans were issued within 20 weeks, a significant improvement on Q1 performance (32%), although below the target of 46%. With multiple

measures in place and a tight oversight, including efficient case tracking systems, additional decision-making panels and collaboration with educational psychologists, the council aims to reach the target of 46% by March 2026 which would bring the borough in line with the average national performance.

Percentage of pupils achieving Levels 5 and above in English and Maths at Key Stage 4

Key stage 4 (KS4) refers to pupils aged between 14 and 16 years old in Year 10 and Year 11. KS4 educational outcomes for the pupils in the borough achieving Levels 5 and above in English and Maths have fluctuated since 2021 (between 56.9% and 61.4%) but are consistently above the national average. Data for summer 2025 indicates that the KS4 attainment rate for the borough's pupils is 56.5%, over 11 percentage points above the national average of 45.2%. This performance indicator is 'Red' due to the service setting an ambitious target despite the national trends.

Percentage of Black Caribbean pupils achieving the expected standard in Reading, Writing and Maths at Key Stage 2

The definition of Black Caribbean pupils has been updated and includes both Black Caribbean & Mixed White Black Caribbean groups. Data for summer 2025 showed that 51% of Black Caribbean pupils achieved the expected standard in Reading, Writing and Maths at KS2, below the target of 57%. The ambitious attainment targets for Black Caribbean pupils were set following in depth consultation with parents and primary school leaders. Council teams have been working with experts and stakeholders to develop data and analysis tools to monitor progress, and we continue to provide challenge to schools in relation to attainment of Black Caribbean pupils.

Percentage of Black Caribbean pupils achieving Levels 5 and above in English and Maths at Key Stage 4

In summer 2025, 32.2% of Black Caribbean pupils achieved levels 5 and above in English and Maths at KS4, below the target of 36.0%. This is a small cohort of pupils and any fluctuations in performance significantly affect the outturn. Nationally, KS4 measures continue to fall slightly (or maintain their level) due to grading revisions. Given this trend, the target set by the council was ambitious. Nevertheless, most secondary schools in the borough have a Race Equality Lead who will focus on outcomes, attendance and mental health of this cohort, and this area is also an integral part of the headteacher performance management. A link officer from the council visits high schools to investigate support available for this group of children and young people, and network meetings are also held with senior staff to share good practice and collaborate on how to close academic gaps between Black Caribbean pupils and their peers.

Number of people completing employability and professional courses

338 residents were supported to complete employability and professional this quarter, with year-to-date performance of 547 against the target of 571. Based on the current number of learners on the programme, there is confidence that the overall annual target of 1,078 will be achieved by March 2026.

FOIs responded to within 20 days

In Q2 2025/26, 78.4% of Freedom of Information requests (FOIs) were responded to within 20 days, below the target of 100%. The drop in performance is reflective of a continuous

quarter on quarter increase in the number of FOI requests received, affecting the council's capacity to respond on time. An FOI database portal has been implemented to reduce duplicate requests, and a further deep dive is conducted to understand the drive in the number of requests. Compliance in 'Mixed' category where a request involves multiple directorates, and within housing & environment remains below average, and the Strategic Leadership Team are reviewing these more closely to support targeted improvements.

Customer satisfaction

In April 2025, we automated the survey process to send SMS reminders to all our customers, prompting them to leave their feedback. This change means that the survey no longer relies on advisors reminding customers at the end of each call to complete the survey and instead, every person that contacts the council receives the survey link directly. While this update has led to a drop in performance since the start of the year, it allows more people to respond and the council to hold a more objective customer opinion. Due to the change in the survey process, comparison with the previous years is not appropriate, however performance still remains high, with 87% of calls resolved at first point of contact and 80% of customers reporting satisfaction with the service.

Number of households with children in B&B over 6 weeks

This indicator relates to non-compliant Bed and Breakfast accommodation (B&B). Across London there has been an increasing number of homelessness approaches due to wider macroeconomic factors, which has continued to put pressure on the council services. Despite these pressures, significant progress in this area has been made over the last 18 months, with a reduction from 329 families in B&B over 6 weeks at the end of 2023/24 to 82 by Q2 2025/26. A step-down programme is underway to re-house all families in non-compliant B&B towards our target of 0. The remaining households in non-compliant B&B will be transferred to alternative Temporary Accommodation, moved into social housing or offered a private sector property.

Percentage of closed homelessness cases with successful outcomes (prevention and relief)

Whilst the successful prevention rate for Q2 was 66% and above target of 60%, the performance at relief stage was at 45%. As a result, overall this indicator fell below the target. To support relief stage work, a mitigation stage project has been activated to provide more focus on casework.

Tenant satisfaction

The year-to-date tenant satisfaction at Q2 25/26 was 57%, slightly below 60% targeted. Performance has increased between Q1 and Q2 (54% and 58% respectively), and early indicators have shown this trend continuing into Q3. Intensive work has been undertaken across all relevant services as part of the council Tenant Satisfaction Measures (TSM) Action Plan. This positive direction of travel gives a degree of confidence that the target can be achieved by year-end.

Number of physical visits to libraries

There were 267,211 visits to the libraries as of Q2 this year, below the target of 331,000. This is largely due to the continued closure of Greenford Library for majority of the period, as preparations were underway for its transfer to the Young Ealing Foundation charity. The library has now reopened to the public, which is expected to have a positive impact on overall

performance in the next quarter. In addition, the library team continues to develop a programme of out-of-hours activities and events at Acton and Northolt Libraries to further increase visitor numbers and engagement.

PERFORMANCE DASHBOARD

More detailed performance information, including trends and analysis, is available on the council's website through our public performance dashboard - Ealing Council Performance Dashboard.

RISKS

The Accounts and Audit Regulations 2015 and Public Sector Internal Audit Standards 2017 require the council to maintain a robust, adequate and effective system of risk management in its delivery of core services. Operation of an effective and embedded risk management framework is an important element of such a system so that the council effectively discharges its corporate governance responsibilities.

The Strategic Leadership Team (SLT) is responsible for reviewing the Strategic Risk Register, ensuring that the management of risk continues to be within the council's risk appetite. Audit Committee is responsible for considering the effectiveness of the council's strategic risk management arrangements.

Good risk management is a key contributor to successful delivery of the council's objectives protecting its assets and resources to deliver value for money and risk implications are required in all member decision reports.

The Strategic Risk Register was fully refreshed by SLT during the year, and this has been reported to the Audit Committee. The council's strategic risks are determined by SLT, and comprise of key risks which either:

• Are relevant and important to all or most of the council's services and functions
• Are external to the council but which have potential significant impacts on the borough, or parts of the borough, as a whole, or
• Have potentially severe reputational consequences should they materialise.

Further details on the above issues are included in the Annual Governance Statement.

STRATEGY AND RESOURCE ALLOCATION

GENERAL FUND

The council's medium-term finance strategy (MTFS) provides an overarching financial and business planning framework by which resources are allocated in line with council priorities and the council Plan. The MTFS sets out to embed financial sustainability into the council's financial planning processes, amid increasing social care and homelessness demands along with escalating costs driven by inflationary increases, increasing costs of delivering services and real terms funding reductions. The council is continually reviewing its savings and delivery plans while looking for alternative sources of revenue to fund services in order to balance current and future budgets.

The council has continued to invest in services that experience significant and continued demand pressures, with prioritisation being given to the most vulnerable groups. Despite an increase in funding from the finance settlement, the complexity of service provision continues to create budget pressures.

In summary, the general fund budget included:

• Growth of £27.880m to meet statutory obligations, demand pressures and key policy priorities aligned to resident demand.
• Contract and pay inflation of £9.615m.
• Savings and efficiency proposals of £21.596m to balance the budget.
• A budgeted contribution to reserves of £3.5m to improve financial resilience over the medium term.

FINANCIAL OUTTURN PERFORMANCE

The council's outturn performance was reported to Cabinet in June 2026 - Cabinet Report.

GENERAL FUND REVENUE

The year 2025/26 remained challenging for local government across the nation, including our council. Inflation remains above the Bank of England's target rate of 2%, and local authorities continued to experience significant cost and volume pressures, especially in the areas of social care and homelessness.

Although the 2025/26 budget prioritised significant growth in these areas, the actual demand and market conditions have surpassed expectations, resulting in overspending in demand-led services such as social care, homelessness, and temporary accommodation. This led to an overspend on services of £13.5m, which was offset by corporate budgets, especially interest on cash balances.

The £0.780m underspend has been transferred to General Fund balances in light of the continued financial uncertainty.

DEDICATED SCHOOLS GRANT (DSG)

The operation of the DSG continues to allow the council to carry forward any DSG deficits and underspends to a ring-fenced reserve. This is separate from the General Fund, which is not permitted to subsidise the account under the regulations.

At the end of 2025/26, the council reported to Cabinet on 10 June 2026 a net deficit balance of £18.519m on its DSG account which includes a High Needs DSG deficit of £18.366m and a Schools Block deficit of £0.153m.

Final adjustments have taken place to produce the statements of accounts, and the updated position that will be reported to Department for Education is below.

RESERVES

General Fund

The General Fund balance shows a net increase in-year of £0.780m, taking the closing position to £21.252m. This is in line with sector guidance that suggests that the general balance should be at least 5% of the net budget requirement and brings the council progressively in line with the general balances held by other London boroughs.

Earmarked Reserves

The overall reserves position including earmarked reserves and excluding technical and schools reserves is shown in the table below. Excluding General Fund Balances, the council has set aside net £14.788m into its ring-fenced and non-ringfenced reserves which includes the budgeted £3.500m.

P A G E | 16 EALING COUNCIL DRAFT STATEMENT OF ACCOUNTS 2025/26

Note: Ringfenced reserves refer to reserves which cannot be repurposed, whereas non-ringfenced reserves are earmarked for specific items, but could be repurposed if the council required.

CAPITAL

Capital Outturn Summary

Capital expenditure of £227.916m was incurred against a capital expenditure budget of £248.380m. After slippage of planned expenditure of £19.980m this has led to an overall net underspend of £0.483m, representing 99.8% spend against the revised budget. The table below splits this out between General Fund services and the HRA,

Capital Financing

The following chart shows how the council funded the 2025/26 capital programme spend for both the General Fund and the Housing Revenue Account. Direct revenue contributions to capital schemes totalled £6.956m in year and borrowing increased by £117.758m, which is managed by internal borrowing.

HOUSING REVENUE ACCOUNT

The HRA outturn variance is a net underspend of £2.925m against an approved surplus budget of £0.448m with a transfer to reserves. The main drivers of the favourable variance are savings on borrowing due to slippage on new build programmes and other capital expenditure and additional income achieved from letting regeneration void properties for temporary accommodation tenants.

The underspend was transferred to reserves.

PENSION FUND

The Pension Fund (the Fund) revenue account shows an in-year surplus of £201.373m, up from a surplus of £48.068m in 2024/25. In cash terms the Fund returned a cash surplus for 2025/26 of £35.003m (2024/25 £35.684m), excluding asset revaluations and disposal gains and losses. As a result of the in-year surplus, net assets increased from £1,714m to £1,915m for the year ended 31 March 2026 representing an increase of 11.7%.

Pension Fund net liabilities must be reviewed every three years by an actuary and a recovery plan agreed to eliminate any deficit. An actuarial valuation of the London Borough of Ealing Pension Fund was carried out as at 31 March 2025 to determine the contribution rates with effect from 1 April 2026 to 31 March 2029.

The valuation also showed that a Primary Contribution Rate of 16.7% of pensionable pay per annum was required from employers. The Primary Rate is calculated as being sufficient, together with contributions paid by members, to meet all liabilities arising in respect of service after the valuation date.

The funding objective as set out in the FSS is to achieve and maintain a solvency funding level of 100% of liabilities (the solvency funding target). In line with the FSS, where a shortfall exists at the effective date of the valuation a deficit recovery plan will be put in place which requires additional contributions to correct the shortfall. Equally, where there is a surplus it may be appropriate to offset this against contributions for future service, in which case contribution reductions will be put in place to allow for this.

The FSS sets out the process for determining the contributions in respect of any deficit / surplus for each employer. At the 2025 actuarial valuation the average recovery period adopted for employers in deficit was 12 years, and the run off period for employers with a recoverable surplus was also 12 years. The resulting total "Secondary Rate" for 2026/29 was, on average, a surplus offset of approximately £3m per annum (which allows for the contribution plans which have been set for individual employers under the provisions of the FSS), although this varies year on year.

OUTLOOK

MEDIUM-TERM FINANCIAL STRATEGY (MTFS)

The aim of the MTFS is to ensure a stable and sustainable financial position that will allow the council to achieve its vision and strategic objectives. It reflects the impact of government funding decisions and the wider national and local economic context. It provides a robust financial framework to support the achievement of the council's overall objectives and delivery of services to its residents.

GENERAL FUND

The general fund strategy has been set in the context of the Autumn Budget 2025 and the Local Government Finance Settlement (LGFS) which included reform on the Business Rates Retention System and the Fair Funding Review 2.0 (FFR2.0), outlining the most significant change to the local government funding framework in over a decade.

P A G E | 19 EALING COUNCIL DRAFT STATEMENT OF ACCOUNTS 2025/26

After consultation over the summer of 2025, the LGFS confirmed the first multi-year funding settlement after more than a decade and sought via FFR2.0 and the Business Rates Reset to allocate a greater share of resources towards councils with higher levels of deprivation and a lower ability to raise council tax locally. The LGFS also included the simplification of the grants system, rolling in 36 grants into the settlement, with other grants being combined into four specific grants.

Whilst this clarity supports robust planning of resources in the longer term, this is in the context of real term funding reductions for over a decade and continued demand led pressures. Continuing to identify and deliver significant savings plans has become increasingly challenging without affecting front-line services for residents. Implementing the council's vision to empower residents, facilitate community connections and networks, and support grassroots-led change through the development of new operating models will drive medium to long-term transformation and change. This approach is essential to achieving financial sustainability amidst rising demand and costs.

Services have identified savings to balance the 2026/27 budget. The council aims to continually improve efficiency and transform service delivery, emphasising community-based services. The table below summarises these savings by directorate.

CAPITAL PROGRAMME

The capital programme for the period 2026-31 was approved on the 3 March 2026 with a gross planned expenditure of £1,184m. The expenditure and financing of the agreed capital programme is shown below.

HOUSING REVENUE ACCOUNT BUSINESS PLAN

The council has a clear objective to deliver safe and genuinely affordable homes for our residents and a regular review of the HRA Business Plan is essential to ensuring that the funding is available to achieve this.

To fund the continued investment in the homes and services, the council approved the rent increase allowed by government to prioritise the funding on the things that matter most to residents, which is the safety and condition of their home and the area they live in. The increased expenditure on repairs and maintenance reflects the needs of the stock, to comply with the revised expectations from the Regulator of Social Housing and increased costs across the repairs and maintenance and construction sectors.

The MTFS for the years 2026 through to 2030 is shown below:

Along with other Registered Providers of social housing, there are risks which could impact upon the HRA Business Plan, including:

• The impact of National Housing Policies The impact of several national policy changes, particularly the Social Housing (Regulation) Act 2023, are likely to impact on the service and may require additional resourcing.
• Repairs and Maintenance Repairs and Maintenance risks which could impact on the demand for services include increased voids, disrepair claims, reports of damp and mould, changes in regulations, and changes in maintenance providers. The increased expenditure on the properties reflects the changing expectations and providing homes that meet the required standards. There remains some regulatory risk if the standards change and increase the investment required.
• Cost of Living The continued increase in the cost of living could increase the number of households in arrears and the value of rent arrears, leading to the need to increase bad debt provisions and potential increases in write offs. As a result of this, it is likely that additional focussed resources will be required to deal with tenant arrears and to support households.

RISK MANAGEMENT IN BUDGET SETTING

It is important that spending is contained within budget so that the council can maintain its financial standing in the face of further pressure on resources in 2026/27 and beyond, as set out in the annual review of the MTFS.

Key strategic risks are included in the Corporate Risk Register, regularly reported to SLT and Audit Committee, and reviewed through the updated Budget strategy and MTFS.

The balancing of the budget in-year depends upon the council achieving its council tax and business rates projections which are closely monitored, and which continue to be challenging in an environment of continued cost-of-living pressures.

The identified immediate risks to the budget process are:

• unfunded income loss pressures as a result of the economic environment and the cost-of-living crisis, particularly in relation to council tax and business rates income – the council will continue to closely monitor the impact of these income streams
• non-delivery of the approved savings plans
• social care and homelessness placement pressures (demand and market), which have been partly mitigated by corporate budgets.

Although the introduction of a multi-year settlement has provided greater certainty in the medium-term, there remains potential for further, as yet unrecognised, risks. For this reason, a prudent approach to the level of reserves held by the council remains sensible and necessary. The strategic director resources, as the council's section 151 officer, is required to state whether the reserves are adequate as part of the annual budget setting process.

The council's MTFS is continually under review and builds in projections for the MTFS period and beyond as further details and analysis become available. These updates are regularly reviewed by SLT and the portfolio holder and updated to reflect financial environment the council is operating in are. Any sustainability impacts will be considered before final decisions are taken on whether or not to implement each proposal.

FINANCIAL STATEMENTS

FINANCIAL FRAMEWORK

The Statement of Accounts provide an overview of the council's financial position for 2025/26. The 2025/26 set of accounts conform to the Code of Practice on Local Authority Accounting in the United Kingdom 2025/26 (the Code), which is based on International Financial Reporting Standards (IFRS).

The layout and purpose of each statement is explained in the following section.

EXPLANATORY STATEMENTS

• Statement of Responsibilities - explains the responsibilities of the council and its Strategic Director, Resources in relation to the council's financial affairs and the Statement of Accounts.

CORE STATEMENTS

• Comprehensive Income and Expenditure Statement – shows the accounting cost in the year of providing services in accordance with generally accepted accounting practices, rather than the amount to be funded from taxation (or rents). Authorities raise taxation (and rents) to cover expenditure in accordance with statutory requirements; this may be different from the accounting cost. The taxation position is shown in both the expenditure and funding analysis and the movement in reserves statement.
• Movement in Reserves Statement – shows the movement from the start of the year to the end on the different reserves held by the council, analysed into ‘usable reserves’ (those that can be applied to fund expenditure or reduce local taxation) and other ‘unusable reserves’. The statement shows how the movements of reserves are broken down between gains and losses incurred in accordance with generally accepted accounting practices and the statutory adjustments required to return to the amounts chargeable to council tax (or rents) for the year. The net increase/decrease line shows the general fund balance and Housing Revenue Account (HRA) balance movements in the year following those adjustments.
• Balance Sheet - shows the value as at the balance sheet date of the assets and liabilities recognised by the council. The net assets of the council (assets less liabilities) are matched by the reserves. Reserves are reported in two categories as below.

Usable reserves, those reserves that the council may use to provide services, subject to the need to maintain a prudent level of reserves and any statutory limitations on their use (for example the capital receipts reserve may only be used to fund capital expenditure or repay debt).

Unusable reserves, those that the council is not able to use to provide services. This category of reserves includes reserves that hold accounting gains and losses (for example the revaluation reserve), where amounts would only become available to provide services if the assets are sold; and reserves that hold timing differences shown in the movement in reserves statement line 'adjustments between accounting basis and funding basis under regulation'.

• Cash Flow Statement – shows the changes in cash and cash equivalents during the reporting period. The statement shows how the council generates and uses cash and cash equivalents by classifying cash flows as operating, investing and financing activities. The net cash flows arising from operating activities is a key indicator of the extent to which the operations of the council are funded by way of taxation and grant income or from the

recipients of services provided by the council. Investing activities represent the extent to which cash outflows have been made for resources which are intended to contribute to the council's future service delivery. Cash flows arising from financing activities are useful in predicting claims on future cash flows by providers of capital (borrowing).

NOTES TO THE CORE FINANCIAL STATEMENTS

All the notes to the core statements above are collected in one place and provide more information to understand the core statements. Later in this document there is an explanation of the policies used in the preparation of the figures in these accounts, especially changes made during the year.

OTHER STATEMENTS

Housing Revenue Account and notes – show the in-year economic cost of providing housing services in accordance with generally accepted accounting practices.

The Collection Fund and notes – reflect the council's statutory obligation to maintain a separate Collection Fund for its transactions as a billing authority in relation to council tax and non-domestic (business) rates.

Pension Fund Accounts – show the contributions to, and benefits paid from the Pension Fund and identifies the investments which make up the assets of the Fund.

GROUP ACCOUNTS

Group accounts are prepared where an authority (the parent) holds majority interest in a subsidiary, associates and/or joint ventures. The main council statements are consolidated with the identified ventures and presented based on materiality. Intra-group transactions and balances are removed on a line-by-line basis. For 2025/26, the council has identified 3 subsidiary companies with material balances, Broadway Living Limited, Broadway Living RP Limited and Greener Ealing Limited, which were included in the group accounts following an assessment of materiality.

ACCOUNTING POLICIES

The specific principles, bases, conventions, rules and practices applied by an authority in preparing and presenting financial statements.

GLOSSARY

At the end of the document there is a glossary which explains some of the technical terms used in these accounts.

FURTHER INFORMATION

Although the accounts are relatively complex to read, a result of the requirement to comply with the reporting obligations, I hope that you find them useful and informative in helping you to understand how the council manages its finances in delivering services for residents. If you have any questions or comments on the council's accounts or their presentation, please e-mail finalaccounts@ealing.gov.uk or write to the Strategic Director, Resources, Ealing Council, Perceval House, 14-16 Uxbridge Road, Ealing W5 2HL.

STATEMENT OF RESPONSIBILITIES

The council's Statement of Accounts has been produced under the CIPFA/LASAAC Code of Practice on Local Authority Accounting in Great Britain (the Code) based on International Financial Reporting Standards (IFRS).

THE COUNCIL'S RESPONSIBILITIES

The council is required:

• to make arrangements for the proper administration of its financial affairs and to ensure that one of its officers has the responsibility for the administration of those affairs. In this council I exercise that role as the strategic director, resources and the council's chief financial officer.
• to manage its affairs to secure economic, efficient and effective use of resources and safeguard its assets.
• to approve the Statement of Accounts.

THE CHIEF FINANCIAL OFFICER'S RESPONSIBILITIES

The chief financial officer is responsible for the preparation of the council's Statement of Accounts in accordance with proper practices as set out in the CIPFA/LASAAC Code of Practice on Local Authority Accounting in Great Britain (the Code).

In preparing this Statement of Accounts the chief financial officer has:

• selected suitable accounting policies and then applied them consistently.
• made judgements and estimates that were reasonable and prudent.
• complied with the CIPFA Code.
• kept proper accounting records which were up to date.
• taken reasonable steps for the prevention and detection of fraud and other irregularities.

CERTIFICATION OF THE STATEMENT OF ACCOUNTS

I certify that the Statement of Accounts presents a true and fair view of the financial position of the London Borough of Ealing as at 31 March 2026 and its income and expenditure for the year then ended, and that the Pension Fund accounts set out a true and fair view of the net assets of the London Borough of Ealing Pension Fund as at 31 March 2026 and its income and expenditure for the year then ended.

Emily Hill

Strategic Director Resources, Chief Financial Officer

30 June 2026

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LONDON BOROUGH OF EALING

To follow

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LONDON BOROUGH OF EALING ON THE PENSION FUND FINANCIAL STATEMENTS OF THE LONDON BOROUGH OF EALING PENSION FUND

To follow

2. Core Financial Statements

COMPREHENSIVE INCOME AND EXPENDITURE STATEMENT

MOVEMENT IN RESERVES STATEMENT

BALANCE SHEET

CASH FLOW STATEMENT

3. Notes to the Accounts

NOTES TO CORE FINANCIAL STATEMENTS

NOTE

• 1 Accounting Standards issued, not adopted
• 2 Critical judgments in applying accounting policies
• 3 Events after the reporting period
• 5 Expenditure and Funding Analysis
• 6 Expenditure and Income analysed by nature
• 8 Movements in Earmarked Reserves
• 9 Property, Plant & Equipment
• 10 Capital Commitments
• 11 Heritage Assets
• 12 Financial Instruments
• 13 Debtors
• 14 Cash and Cash Equivalents
• 15 Creditors
• 16 Provisions
• 17 Usable Reserves
• 18 Unusable Reserves
• 19 Cash Flow Statement
• 20 Reconciliation of Liabilities arising from Financing Activities
• 21 Members’ Allowances
• 22 Officers’ Remuneration
• 23 Termination Benefits
• 24 External Audit Costs
• 25 Dedicated Schools Grant
• 26 Grant Income
• 27 Related Parties
• 28 Capital Expenditure and Capital Financing
• 29 Leases
• 30 Private Finance Initiatives (PFI)
• 31 Defined Benefit Pension Schemes
• 32 Pension Schemes Accounted for as Defined Contribution Schemes
• 33 Contingent Assets and Liabilities
• 34 Nature and Extent of Risks arising from Financial Instruments

PAGE

• estimation uncertainty
• Regulation

Note 1 Accounting Standards Issued, Not Adopted

The Code of Practice on Local Authority Accounting in the United Kingdom 2024/25 (the Code) requires an authority to disclose information in the 2024/25 financial statements about new accounting standards that have been issued but not yet adopted.

There are no changes in accounting standards for 2026/27 that are anticipated to have a material impact on the council's financial performance or financial position.

Note 2 Critical judgements in applying accounting policies

In applying the accounting policies set out in Section 5, the council has had to make certain judgements about complex transactions or those involving uncertainty about future events. The critical judgements made in the Statement of Accounts are:

ACCOUNTING FOR SCHOOLS

The council recognises the land and buildings used by schools in accordance with the accounting policy for Property, Plant and Equipment. These assets are recognised in the Balance Sheet if it is probable that the future economic benefits or service potential associated with them will flow to the council or the schools within its control.

The council has completed an assessment across the different types of schools it controls within the Borough. Judgements have been made to determine the arrangements in place and the accounting treatment of the land and building assets.

The council has not recognised Academies but includes all maintained schools; community schools, voluntary aided schools and foundation schools. The liabilities relating to the PFI schemes including two Academy Schools remain on balance sheet as the council is the liable party.

GROUP ACCOUNTS

The council has reviewed its interest in other companies and has prepared group accounts to include entities which fall within the group boundary and are considered to be material. Following this assessment, three wholly owned subsidiaries have been considered material and have been consolidated in the group accounts. They are Broadway Living Ltd, Broadway Living RP Ltd and Greener Ealing Ltd. Further information can be found in the Group Accounts section of this document.

GRANT ACCOUNTING

The council is required to make a judgement on the treatment of grants and contributions, in particular, whether there are conditions and/or restrictions and if these have been met, and whether the council is acting as principal or agent. If conditions are met, or the grant has no conditions, the income will be credited to the Comprehensive Income and Expenditure Statement, and any unused grant will be held in an earmarked reserve. For conditional grants where conditions are not met, the grant will be held as a creditor on the balance sheet. Grants where the council is acting as an agent the net balance is held on balance sheet as a creditor.

LEASES

The council is required to make a judgement on Right of Use (ROU) assets in particular Private Sector Lease (PSL) terms. If the lease term has expired but the property has not been handed back, the council assesses if an extension is in progress, if an extension is to be processed but not yet agreed the council assumes a standard 2 year term will be renewed and applies relevant accounting practices under ROU assets for the lease liability.

The council has concluded that private sector leases (PSLs) should not be subject to the Code's indexation approach and are therefore held on a historic cost basis (i.e. IFRS 16 measurement) rather than indexed valuation. This reflects the distinct accounting treatment of leases under IFRS 16, as adopted by the CIPFA Code, whereby right-of-use assets are initially measured at the value of the lease liability (based on discounted contractual cash flows using the prevailing index at commencement) and are subsequently accounted for through depreciation and liability remeasurement, rather than periodic revaluation.

Note 3 Events after the reporting period

Events after the balance sheet date are those events, both favourable and unfavourable, that occur between the end of the reporting period and the date when the Statement of Accounts is authorised for issue. Two types of events can be identified:

• Those that provide evidence of conditions that existed at the end of the reporting period – the Statement of Accounts is adjusted to reflect such events.
• Those that are indicative of conditions that arose after the reporting period – the Statement of Accounts are not adjusted to reflect such events, but where a category of events would have a material effect, disclosure is made in the notes of the nature of the events and their estimated financial effect.

The statement of accounts was authorised for issue by the Strategic Director Resources (Chief Financial Officer) on 30 June 2026. Events taking place after this date are not reflected in the financial statements or notes. Where events taking place before this date provided information about conditions existing at 31 March 2026, the figures in the financial statements and notes have been adjusted in all material respects to reflect the impact of this information. This includes any amendments following the audit of the accounts.

On the 10 June 2026 Cabinet agreed to the winding up of the council's two subsidiaries Broadway Living Limited and Broadway Living Registered Provider. After extensive restructuring work the decision was taken in the best interest of both tenants and the council to transfer the housing assets of the companies into the council. To date, the full financial impact has not been finalised, however plans are in place to manage any unfavourable impacts as a result of releasing liabilities between the group entities.

Note 4 Assumptions made about the future and other major sources of estimation uncertainty

The Statement of Accounts contains estimated figures that are based on assumptions made by the council about the future or that are otherwise uncertain. Estimates are made taking into account historical experience, current trends and other relevant factors. However,

because balances cannot be determined with certainty, actual results could be materially different from the assumptions and estimates.

The items in the council's Balance Sheet at 31 March 2026 for which there is a significant risk of material adjustment in the forthcoming financial year are as follows:

GOING CONCERN

The Accounting Code (Standard IAS 1) requires management to assess the council's ability to continue as a going concern and to disclose any material uncertainties related to events or conditions that may cast significant doubt upon the entity's ability to continue as a going concern. The council discloses that the Accounts have been prepared on a going concern basis and that the council will continue in existence for the foreseeable future.

This assumption is made because the local authorities carry out functions essential to the local community and are themselves revenue-raising bodies (with limits on their revenue-raising powers at the discretion of central government). If an authority were in financial difficulty, the prospects are that alternative arrangements might be made by central government in the form of exceptional financial support which allows for the continuation of the services it provides through the capitalisation of revenue expenditure which allows the

recovery of any deficit over more than one financial year or the funding of that expenditure from capital receipts.

The Code states that transfers of services under combinations of public sector bodies (for example a local government reorganisation) do not require the presumption of going concern. However, if there are material concerns about the financial health of the council, this would be raised as part of the statutory responsibilities of the Section 151 Officer and by the external auditors as part of the accounts audit process.

Note 5 Expenditure and Funding Analysis

The Expenditure and Funding Analysis shows how annual expenditure is used and funded from resources (government grants, rents, council tax and business rates) by local authorities in comparison with those resources consumed or earned by authorities in accordance with generally accepted accounting practices. It also shows how this expenditure is allocated for decision making purposes between the council's services. Income and expenditure accounted for under generally accepted accounting practices is presented more fully in the Comprehensive Income and Expenditure Statement.

Note: Movement in Reserves Statement includes details of the split between HRA and General Fund

EFA Note 1: ADJUSTMENTS TO MANAGEMENT REPORTING

This column adjusts the outturn figures reported to management for items chargeable to the General Fund for:

Reserves – the removal of transfers to/from reserves included in the management outturn report as these are not shown on the face of the Comprehensive Income and Expenditure Statement.

Financing & Investment Income & Expenditure – the reallocation of Financing & Investment Income & Expenditure to/from the Net Cost of Services to Other Operating Income and Expenditure.

EFA Note 2: ADJUSTMENT FOR CAPITAL PURPOSES

Adjustments for capital purposes – this column adds in the depreciation and impairment and revaluation gains and losses in the service line, and for:

Other Operating Expenditure – adjusts for capital disposals with a transfer of income on disposal of assets and the amounts written off for those assets.

Financing and Investment Income and Expenditure – the statutory charges for capital financing i.e. Minimum Revenue Provision and other revenue contributions are deducted from other income and expenditure as these are not chargeable under generally accepted accounting practices.

Taxation and Non-Specific Grant Income and Expenditure – capital grants are adjusted for income not chargeable under generally accepted accounting practices. Revenue grants are adjusted from those receivable in the year to those receivable without conditions or for which conditions were satisfied throughout the year. The Taxation and Non-Specific Grant Income and Expenditure line is credited with capital grants receivable in the year without conditions or for which conditions were satisfied in the year.

EFA Note 3: NET CHANGES FOR THE PENSIONS ADJUSTMENTS

Net change for the removal of pension contributions and the addition of IAS 19 Employee Benefits pension related expenditure and income:

For Services this represents the removal of the employer pension contributions made by the council as allowed by statute and the replacement with current service costs and past service costs.

For Financing and Investment Income and Expenditure – the net interest on the defined benefit liability is charged to the Comprehensive Income and Expenditure Statement.

EFA NOTE 4: OTHER STATUTORY ADJUSTMENTS

Other statutory adjustments between amounts debited / credited to the Comprehensive Income and Expenditure Statement and amounts payable / receivable to be recognised under statute:

For Financing and Investment Income and Expenditure the other differences column recognises adjustments to the General Fund for the timing differences for premiums and discounts.

For Taxation and Non-Specific Grant Income and Expenditure represents the difference between what is chargeable under statutory regulations for council tax and business rates that was projected to be received at the start of the year and the income recognised under

generally accepted accounting practices in the Code. This is a timing difference as any difference will be brought forward in future surpluses or deficits on the Collection Fund.

Note 6 Expenditure and Income Analysed by Nature

Note 7 Adjustments between Accounting Basis and Funding Basis under Regulations

This note details the adjustments that are made to the total comprehensive income and expenditure recognised by the council in the year in accordance with proper accounting practice to arrive at the resources that are specified by statutory provisions as being available to the council to meet future capital and revenue expenditure.

The following sets out a description of the reserves that the adjustments are made against.

GENERAL FUND BALANCE

The General Fund is the statutory fund into which all the receipts are required to be paid and out of which all liabilities are to be met, except to the extent that statutory rules might provide otherwise. These rules can also specify the financial year in which liabilities and payments should impact on the General Fund Balance, which is not necessarily in accordance with proper accounting practice. The General Fund Balance therefore summarises the resources that the council is statutorily empowered to spend on its services or on capital investment at the end of the financial year.

HOUSING REVENUE ACCOUNT BALANCE

The HRA balance reflects the statutory obligation to maintain a revenue account for local authority council housing provision in accordance with Part VI of the Local Government and Housing Act 1989. It contains the balance of income and expenditure that is available to fund future expenditure in connection with the council's landlord function or (where in deficit) that is required to be recovered from tenants in future years.

MAJOR REPAIRS RESERVE

The council is required to maintain the major repairs reserve, which controls an element of the capital resources limited to being used on capital expenditure on HRA assets or the financing of historical capital expenditure by the HRA. The balance shows the capital resources that have yet to be applied at the year-end (nil in 2025/26 and 2024/25).

CAPITAL RECEIPTS RESERVE

The Capital Receipts Reserve holds the proceeds from the disposal of land or other assets, which are restricted by statute from being used other than to fund new capital expenditure or to be set aside to finance historical capital expenditure. The balance of the reserve shows the resources that have yet to be applied for these purposes at the year-end.

CAPITAL GRANTS UNAPPLIED

The Capital Grants Unapplied Reserve holds the grants and contributions received towards capital projects for which the council has met the conditions that would otherwise require repayment of the monies, but which have yet to be applied to meet expenditure. The balance is restricted by grant terms as to the capital expenditure against which it can be applied and / or the financial year in which this can take place.

P A G E | 43 EALING COUNCIL DRAFT STATEMENT OF ACCOUNTS 2025/26

PAGE|44 EALING COUNCIL DRAFT STATEMENT OF ACCOUNTS 2025/26

Note 8 Movements in Earmarked Reserves

The council sets aside specific amounts as reserves for future policy purposes or to cover risks and contingencies. Reserves are created by appropriating amounts out of the General Fund Balance in the Movement in Reserves Statement. When expenditure to be financed from a reserve is incurred, it is charged to the appropriate service in that year to score against the Surplus or Deficit on the Provision of Services in the Comprehensive Income and Expenditure Statement. The reserve is then appropriated back into the General Fund Balance in the Movement in Reserves Statement so that there is no net charge against council tax for the expenditure.

GENERAL FUND EARMARKED RESERVES

The Insurance reserve is held to cover future insurance claims.

The Covid-19 Grant reserve holds the general fund grants that have been received and are carried forward due to permitted use to fund future Covid pressures.

The Collection Fund Equalisation Fund is a technical reserve which is used to allow for distribution of collection fund balances relating to timing differences.

Corporate Other reserves is a group of reserves held corporately, some are held to cover against future costs the council will incur, such as Election Reserves, whilst others are held in order to provide funds to drive corporate strategy and efficiencies.

The Economic Volatility reserve is held to manage volatility in collection fund income and manage risks arising from the wider economic context such as the impact of inflation and the cost of living pressures.

The Dedicated Schools Grant (DSG) reserve is held to carry forward any unspent DSG to be used in future years. The operation of the DSG continues to allow the council to carry forward any DSG underspends to a ring-fenced reserve, and any deficits on DSG would be treated as an unusable reserve. In 2025/26 the council has recognised an £18.121m deficit which has been moved to an unusable reserve and is reported in Note 18.

Service Other reserves is a group of reserves held by services to provide financial resources for service-based projects such as recycling initiatives or school transport infrastructure.

The Parking Places reserve surplus will be reinvested, as per Section 55 of the Road Traffic Regulation Act 1984 (as amended), in improvements in the delivery of on and off-street parking services.

The PFI Reserves are in place to meet the difference between central government revenue grant and actual costs for the council's PFI schemes in future years and to fund future annual repayment liabilities.

School Balances (ring fenced) contains the school funds which are ring-fenced for schools' use.

HRA EARMARKED RESERVES

Major Repairs Reserve funds are available to meet capital investment in council housing.

Estate Regeneration Delivery funds are held for future investment in Estate Regeneration.

Note 9 Property, Plant and Equipment

Note: The opening net book value in 2024/25 includes £61,615k on transition of IFRS 16 Leases, see note 29 for further details. Note 29 includes details of the Right of Use Assets accounted within the Property, Plant and Equipment note above.

INFRASTRUCTURE ASSETS

In accordance with the temporary relief offered by the Local Authorities (Capital Finance and Accounting) (England) (Amendment) Regulations 2022, this note does not include disclosure of gross costs and accumulated depreciation for infrastructure assets because historical reporting practices and resultant information deficits mean that this would not faithfully represent the asset position to the users of the financial statement.

The council has chosen not to disclose the information as the previously reported practices and resultant information deficits mean that gross costs and accumulated depreciation are not measured accurately and would not provide the basis for the users of the financial statements to take economic or other decisions relating to the infrastructure assets.

The council has determined in accordance with Regulation 30M of the Local Authorities (Capital Finance and Accounting) (England) (Amendment) Regulations 2022 that the carrying amounts to be derecognised for infrastructure assets when there is replacement expenditure is nil.

DEPRECIATION

The following useful lives and depreciation rates have been used in the calculation of depreciation:

• Council dwellings – 60-80 years
• Other operating buildings – 40-60 years
• Vehicles, plant, and equipment – 5-15 years
• Infrastructure assets – 10-75 years
• Intangible assets – 5-10 years

REVALUATIONS

The council carries out a rolling programme that ensures that all property, plant and equipment required to be measured at current value is revalued at least every five years. This includes Council Dwellings, Other Land & Buildings, Community Assets and Surplus Assets. Council dwellings are valued annually. Valuations of land and buildings (including council dwellings) were carried out by the council's external valuers in accordance with the methodologies and bases for estimation set out in the professional standards of the Royal Institution of Chartered Surveyors. Valuations of vehicles, plant and equipment are based on historic cost which is not considered to be materially different to current value.

The significant basis applied in estimating the current values of property, plant and equipment are:

• Non-specialised properties occupied by the council or used for the purpose of service delivery, have been valued on the basis of Existing Use Value (EUV)
• Specialised properties, for which there is no recognised market, have been valued by the Depreciated Replacement Cost (DRC) method
• Surplus assets have been valued on the basis of Fair Value (FV).

The council has applied below indices for assets not included in the rolling programme for 2025/26:

The table below shows the most recent year that assets where a full (physical) valuation was undertaken, though some assets may have had a desktop valuation more recently.

Note 10 Capital Commitments

At 31 March 2026, the council has significant commitments for future capital expenditure in 2026/27 and future years, budgeted to cost £154.899m. Similar commitments at 31 March 2025 were £131.282m. The commitments are:

Note 11 Heritage Assets

RECONCILIATION OF THE CARRYING VALUE OF HERITAGE ASSETS HELD BY THE COUNCIL

The council has several heritage assets, comprising of the council's art collection, ceramics, figurine and other antiques and civic regalia. These assets are held at insurance valuations which are based on market values.

Additionally, there is a World War II underground bunker at one of the borough's schools. It is the opinion of the council that obtaining a valuation for the bunker would be disproportionate in relation to the benefits derived by users of the financial statements. This heritage asset is therefore not included on the balance sheet, although it is likely that this would have no monetary value as no market would exist for the sale of the asset.

Note 12 Financial Instruments

CATEGORIES OF FINANCIAL INSTRUMENTS (12A)

The following categories of financial instrument are carried in the Balance Sheet.

31 March 2025 31 March 2026

Non-Current Current Non-Current Current

Investments £000's Debtors£000's Investments £000's Debtors£000's Total£000's Investments £000's Debtors£000's Investments £000's Cash & Cash Equivalents£000's Debtors£000's Total£000's

Financial Assets

Amortised Cost - 59,869 18,181 420,830 84,293 583,174 - 59,723 118,716 158,160 77,356 413,955

31 March 2025 31 March 2026

Total 2,136 59,884 18,181 420,830 134,087 635,118 2,136 59,738 118,716 158,160 164,028 502,779

Fair value through other comprehensive income 2,136 - - - - 2,136 2,136 - - - - 2,136

Total Financial Assets 2,136 59,869 18,181 420,830 84,293 585,310 2,136 59,723 118,716 158,160 77,356 416,091

Non-Financial Assets - 15 - - 49,794 49,809 - 16 - - 86,672 86,688

Non-Current Current Non-Current Current

Financial Liabilities Borrowings£000's Creditors£000's Borrowings£000's Creditors£000's Total£000's Borrowings£000's Creditors£000's Borrowings£000's Creditors£000's Creditors£000's Total£000's Total£000's

Financial liabilities at amortised cost (797,751) (555) (71,626) (129,236) (999,168) (773,984) (322) (75,368) (116,633) (966,308) (773,984) (116,633)

Total Financial Liabilities (797,751) (555) (71,626) (129,236) (999,168) (773,984) (322) (75,368) (116,633) (966,308) (773,984) (116,633)

Non-Financial Liabilities - (166,285) - (92,416) (258,701) - (157,320) - (87,897) (245,216) (966,308) (773,984)

Total (797,751) (166,840) (71,626) (221,652) (1,257,870) (773,984) (157,642) (75,368) (204,530) (1,211,524) (773,984) (1,211,524)

Note: Non-Financial Liabilities balance for 31 March 2025 is updated to reflect the 2024-25 adjustment posted on Finance Lease Long Term Liability.

CARRYING VALUE

Under accounting requirements, the carrying value of the financial instrument value is shown in the balance sheet which includes the principal amount borrowed or lent and further adjustments for breakage costs or stepped interest loans (measured by an effective interest rate calculation) including accrued interest. Accrued interest is shown separately in current assets/liabilities where the payments/receipts are due within one year. The effective interest rate is effectively accrued interest receivable under the instrument, adjusted for the amortisation of any premiums or discounts reflected in the purchase price.

FAIR VALUE

Fair value has been measured by:

• Direct reference to published price quotations in an active market and/or
• Estimating using a valuation technique

FINANCIAL INSTRUMENTS DESIGNATED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (12B)

The council has designated the following equity at 31 March 2026 as fair value through other comprehensive income:

The council has a shareholding in Broadway Living Limited (representing 100% of the company's share capital). The shares are carried at cost of £2.136m and have not been valued as a fair value cannot be measured reliably and is not considered to be material. There are no established companies with similar aims in the council's area whose shares are traded, and which might provide comparable market data. The council has no current intention to dispose of the shareholding.

INCOME, EXPENSE, GAINS AND LOSSES (12C)

The gains and losses recognised in the Comprehensive Income and Expenditure Statement in relation to financial instruments are made up as follows:

FAIR VALUES OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES (12D)

Basis for recurring fair value measurements:

• Level 1 Inputs – quoted prices (unadjusted) in active markets for identical assets or liabilities that the council can access at the measurement date.
• Level 2 Inputs – inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
• Level 3 Inputs – unobservable inputs for the asset or liability.

Some of the council's financial assets are measured at fair value on a recurring basis and are described in the following table, including the valuation techniques used to measure them.

EQUITY SHAREHOLDING IN BROADWAY LIVING LTD

The council's shareholding in Broadway Living Ltd. The shares in this company are not traded in the active market and fair value of £2.136m is the acquisition amount at the current time as no assessment of its future trading prospects can be estimated with reasonable certainty. The fair value is not expected to be materially different to the carrying value.

THE FAIR VALUES OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES THAT ARE NOT MEASURED AT FAIR VALUE (BUT FOR WHICH FAIR VALUE DISCLOSURES ARE REQUIRED) (12E)

Except for the financial assets carried at fair value (described in the table above), all other financial liabilities and financial assets represented by amortised cost and long-term debtors and creditors are carried on the balance sheet at amortised cost. Their fair value can be assessed by calculating the present value of the cash flows that take place over the remaining life of the instruments, using the following assumptions:

• For loans from the PWLB payable, PWLB New Loan rates have been applied to provide the fair value
• For non-PWLB loans payable, PWLB New Loan rates have been applied to provide the fair value
• For loans receivable prevailing benchmark market rates have been used to provide the fair value
• No early repayment or impairment is recognised.

Where an instrument has a maturity of less than 12 months or is a trade or other receivable the fair value is taken to be the carrying amount or the billed amount:

• The fair value of trade and other receivables is taken to be the invoiced or billed amount.

The fair values calculated are as follows:

Financial Liabilities - Fair Value Fair Value Level 31 March 2025 31 March 2026

PWLB debt 2 (735,680) (529,076) (719,232) (495,203)

Non-PWLB debt 2 (84,622) (65,725) (74,570) (57,072)

Short term borrowing 2 (49,075) (49,075) (55,550) (55,550)

Total Borrowings (869,377) (643,876) (849,352) (607,825)

Trade Creditors - (129,791) (129,791) (116,955) (116,955)

Carrying Amount £000's Fair Value £000's Carrying Amount £000's Fair Value £000's

Financial Liabilities (999,168) (773,668) (966,308) (724,781)

The fair value of the liabilities is lower than the carrying amount because the council's portfolio of loans includes a number of fixed rate loans where the interest rate payable is lower than the rates available for similar loans in the market at the balance sheet date. This shows a notional future loss (based on economic conditions at 31 March 2026) arising from a commitment to pay interest to lenders below current market rates.

The fair value of Public Works Loan Board (PWLB) loans of £495.203m measures the economic effect of the terms agreed with the PWLB compared with estimates of the terms that would be offered for market transactions undertaken as at 31 March 2026. The difference between the carrying amount and the fair value measures the additional interest that the council will pay over the remaining terms of the loans under the agreements with the PWLB, against what would be paid if the loans were at prevailing market rates.

Cash and cash equivalents - 420,830 420,830 158,160 158,160

Short term investments 2 18,181 18,181 118,716 118,716

Long term investments 2 - - - -

Long term debtors - 59,869 43,914 59,723 29,281

Short term debtors - 84,293 84,293 77,356 77,356

Total Assets 583,174 567,219 413,955 383,513

Financial Assets - Fair Value Fair Value Level 31 March 2025 31 March 2026

Carrying Amount £000's Fair Value £000's Carrying Amount £000's Fair Value £000's

Short-term investments & borrowing, and short-term debtors & creditors are all carried at cost as this is a fair approximation of their value.

Note 13 Debtors

The short-term debtors shown in the table below are net of impairment allowance for doubtful debts.

The gross total of the short-term debtors as at the 31 March 2026 is £292.474m (31 March 2025 was £246.021m).

Note 14 Cash and Cash Equivalents

The balance of Cash and Cash Equivalents is made up of the following elements:

The year-end overdraft reflects the bank position including all outstanding and unpresented items, the council does not operate a physical overdraft to this value, and this is part of its cash management policy. The council has a set-off agreement with the bank, meaning any overdraft can be offset against other accounts within the agreement.

Note 15 Creditors

Note 16 Provisions

Provisions have been made in the current and previous financial years to set aside amounts to meet future expenditure. These provisions are made at the point where a given liability arises but where the expenditure relating to the liability has not yet been made. The balance on the provisions account therefore reflects the balance of unpaid known liabilities which have already been charged to the council's revenue account. When the liability is paid the expenditure is charged against the provision. The provisions shown above include the material items detailed below:

CLAIMS AND SELF-INSURANCE PROVISION

This provision is used to provide funding to cover liability claims, risk management and "all risks" cover for specified equipment in council establishments. On the basis of professional advice from the council's insurance brokers, officers are of the view that all known insurance risks are provided for.

NON-DOMESTIC RATES APPEALS

This provision has been set up to cover potential losses following successful appeals by Business Ratepayers resulting in a reduction in their rateable values and consequent reduction in the collectable amounts.

Note 17 Usable Reserves

Movements in the council's usable reserves are detailed in the Movement in Reserves Statement, Note 7 Adjustments between Accounting Basis and Funding Basis under Regulations and Note 8 Movements in Earmarked Reserves.

Note 18 Unusable Reserves

REVALUATION RESERVE (NOTE 18A)

The Revaluation Reserve contains the gains made by the council arising from increases in the value of its property, plant and equipment. The balance is reduced when assets with accumulated gains are:

• Revalued downwards or impaired and the gains are lost
• Used in the provision of services and the gains are consumed through depreciation or
• Disposed of and the gains are realised.

The reserve contains only revaluation gains accumulated since 1 April 2007, the date that the reserve was created. Accumulated gains arising before that date are consolidated into the balance on the Capital Adjustment Account.

CAPITAL ADJUSTMENT ACCOUNT (NOTE 18B)

The Capital Adjustment Account absorbs the timing differences arising from the different arrangements for accounting for the consumption of non-current assets and for financing the acquisition, construction or enhancement of those assets under statutory provisions. The account is debited with the cost of acquisition, construction or subsequent costs as depreciation, impairment losses and amortisations are charged to the Comprehensive Income and Expenditure Statement (with reconciling postings from the Revaluation Reserve to convert fair value figures to a historical cost basis). The account is credited with

the amounts set aside by the council as finance for the costs of acquisition, construction and subsequent costs.

The account also contains revaluation gains accumulated on property, plant and equipment before 1 April 2007, the date the Revaluation Reserve was created to hold such gains.

Note 7 provides details of the source of all the transactions posted to the account, apart from those involving the Revaluation Reserve.

DEFERRED CAPITAL RECEIPTS RESERVE (NOTE 18C)

The Deferred Capital Receipts Reserve holds the gains recognised on the disposal of non-current assets but for which cash settlement has yet to take place. Under statutory arrangements, the council does not treat these gains as usable for financing new capital expenditure until they are backed by cash receipts. When the deferred cash settlement eventually takes place, amounts are transferred to the Capital Receipts Reserve.

COLLECTION FUND ADJUSTMENT ACCOUNT (NOTE 18D)

The Collection Fund Adjustment Account manages the differences arising from the recognition of council tax and non-domestic rates income in the Comprehensive Income and Expenditure Statement as it falls due from council taxpayers and business rates payers compared with the statutory arrangements for paying across amounts to the General Fund from the Collection Fund.

FINANCIAL INSTRUMENTS ADJUSTMENT ACCOUNT (NOTE 18E)

The financial instruments adjustment account absorbs the timing differences arising from the different arrangements for accounting for income and expenses relating to certain financial instruments and for bearing losses or benefiting from gains per statutory provisions.

Financial Instruments Adjustment Account 2024/25 £000's 2025/26 £000's

Balance at 1 April (1,352) (1,317)

Amount by which finance costs charged to the comprehensive income and expenditure statement are different from finance costs chargeable in the year in accordance with statutory requirements 35 37

Balance at 31 March (1,317) (1,280)

ACCUMULATED ABSENCES ACCOUNT (NOTE 18F)

The Accumulated Absences Account absorbs the differences that would otherwise arise on the General Fund Balance from accruing for compensated absences earned but not taken in the year, e.g. annual leave entitlement carried forward at 31 March. Statutory arrangements require that the impact on the General Fund is neutralised by transfers to or from the account.

PENSIONS RESERVE (NOTE 18G)

The Pensions Reserve absorbs the timing differences arising from the different arrangements for accounting for post-employment benefits and for funding benefits in accordance with statutory provisions. The council accounts for post-employment benefits in the Comprehensive Income and Expenditure Statement as the benefits are earned by employees accruing years of service, updating the liabilities recognised to reflect inflation, changing assumptions and investment returns on any resources set aside to meet the costs.

However, statutory arrangements require benefits earned to be financed as the council makes employer's contributions to pension funds or eventually pay any pensions for which it is directly responsible. The council no longer holds a credit balance on the Pensions Reserve, this previously showed a substantial shortfall in the benefits earned by past and current employees and the resources the council has set aside to meet them which has been resolved at the latest valuation. The statutory arrangements will ensure that funding will have been set aside by the time the benefits come to be paid.

DEDICATED SCHOOLS GRANT ADJUSTMENT ACCOUNT (NOTE 18H)

The Dedicated Schools Grant adjustment account holds accumulated deficits relating to the schools' budget. Where the council has incurred a deficit on its schools' budget between years beginning 1 April 2020 and ending 31 March 2026, the Local Authorities (Capital

Finance and Accounting) Regulations do not allow for such amounts to be included in the General Fund and instead must be held in this adjustment account. The statutory override for any Dedicated Schools Grant deficits is effective until 31 March 2028.

Balance at 1 April (1,854) (5,641)

School budget deficit transferred from General Fund in accordance with statutory requirements (3,787) (12,480)

Balance at 31 March (5,641) (18,121)

Dedicated Schools Grant Adjustment Account 2024/25 £000's 2025/26 £000's

Note 19 Cash Flow Statements

OPERATING ACTIVITIES (NOTE 19A)

The cash flows for operating activities include the following items:

The cash flows from operating activities include the following items: 2024/25 £000's 2025/26 £000's

Interest Received 30,292 19,042

Interest Paid (41,437) (38,798)

Dividends Received 1,626 610

The Surplus/(Deficit) on the Provision of Services has been Adjusted for the Following Non-Cash Movements: 2024/25 £000's 2025/26 £000's

Depreciation and Amortisation 76,063 70,661

Impairment and Downward Valuations 29,586 28,643

Increase/(Decrease) in Provision of Expected Credit Losses (393) 16,512

Increase/(Decrease) in Creditors (2,369) (9,490)

(Increase)/Decrease in Debtors (20,545) (46,394)

Movement in Pension Liability (6,178) (16,329)

Carrying Amount of Non-Current Assets and Non-Current Assets Held for Sale, Sold or Derecognised 25,668 8,246

Other Non-Cash Items Charged to the Net Surplus or (Deficit) on the Provision of Services

Increase/(Decrease) in Provisions (4,720) (3,379)

Increase/(Decrease) in Accumulated Absences 1,794 152

Total 98,906 48,622

The Surplus/(Deficit) on the Provision of Services has been Adjusted for the Following Items that are Investing and Financing Activities: 2024/25 £000's 2025/26 £000's

Proceeds from the Sale of Property Plant and Equipment, Investment Property and Intangible Assets (14,013) (18,100)

Grant Receipts for the Financing of New Capital Expenditure (57,787) (68,543)

Net cash flows from operating activities (71,800) (86,643)

INVESTING ACTIVITIES (NOTE 19B)

The cash flows for investing activities include the following items:

FINANCING ACTIVITIES (NOTE 19C)

The cash flows for financing activities include the following items:

Note 20 Reconciliation of liabilities arising from Financing Activities

PAGE 68 EALING COUNCIL DRAFT STATEMENT OF ACCOUNTS 2025/26

Note 21 Members' Allowances

The total of the allowances paid to the Members of the council in 2025/26 was £1.464m (£1.411m in 2024/25)

Note 22 Officers' Remuneration

The remuneration of senior employees, which is defined as those who are members of the Strategic Leadership Team, those holding statutory posts, or those whose remuneration is £150,000 or more per year, is set out below. Salary (including Fees and Allowances) includes elements such as market supplements and honoraria. The costs disclosed for interims represents the total amount paid to the respective agencies which includes agency fees and other charges. No payments were made for bonuses in either year.

• (a)This postholder is Tony Clements.
• (b)This postholder is Emily Hill.
• (c)This postholder is Robert South
• (d)This postholder is Nicola Fiedler.
• (e)This postholder is Kerry Stevens and left the role on 12 April 2026.
• (f)The Strategic Director - Adults and Public Health post had an internal acting up appointment from 19 March 2026 and receives an acting up allowance of £37,212 per annum.
• (g)This postholder was Amanda Askham and left the post on 9 February 2026.
• (h)The Strategic Director - Strategy and Change post had an interim appointment from 9 February 2026.
• (i)This postholder is Peter George.
• (j)This postholder is Rhian Davies, employed on an interim basis.

• (a)This postholder is Tony Clements, 2024/25 salary has been restated from 2024/25 published accounts which incorrectly included returning officer pay.
• (b)This postholder is Emily Hill.
• (c)This postholder is Robert South
• (d)This postholder is Nicola Fiedler.
• (e)This postholder is Kerry Stevens.
• (f)This postholder is Amanda Askham.
• (g)This postholder is Peter George.
• (h)This post holder left on 30 June 2024 and the post has been covered on an interim basis since then.
• (i)This postholder is Rhian Davies, employed on an interim basis from 31 May 2024

The 2024/25 salary disclosed in the table above for (b), (e), (f) and (h) have been restated as the 2024/25 published accounts incorrectly included elections related payments.

The number of employees receiving more than £50,000 remuneration for the year (excluding employer's pension contributions) is shown below.

Note 23 Termination Benefits

The numbers of exit packages with total cost per band and total cost of redundancies are set out in the table below:

Termination benefits consist of redundancy payments to employees and pension strain costs payable to the Ealing Pension Fund, which arise from an employee retiring earlier than anticipated on the grounds of redundancy, without an actuarial reduction of their pension.

Note 24 External Audit Costs

The council has incurred the following costs in relation to the audit of the Statement of Accounts, certification of grant claims and statutory inspections provided by the council's external auditors.

The 2024/25 and 2025/26 external audit fees disclosed above for Forvis Mazars are based on the published PSAA scale fees. These fees may be subject to change, including as a result of the government's proposals to address the local audit backlog. The potential impact on the 2025/26 audit fee is not yet known.

The 2024/25 fees payable to KPMG was restated from the 2024/25 published accounts as the final agreed fees is disclosed in the table above.

Note 25 Dedicated Schools Grant

The council's expenditure on schools is funded primarily by grant monies provided by the Department for Education (DfE), the Dedicated Schools Grant (DSG). The DSG is ringfenced and can only be applied to meet expenditure properly included in the schools budget, as defined in the School Finance and Early Years (England) Regulations 2024. The schools budget includes elements for a range of educational services provided on an authority-wide basis and for the individual schools budget (ISB), which is divided into a budget share for each maintained school.

Details of the deployment of DSG receivable for 2025/26 are as follows:

Note 26 Grant Income

The following grants and contributions (over £1m) were credited to the Comprehensive Income and Expenditure Statement.

In accordance with The Code of Practice on Local Authority Accounting in the United Kingdom 2025/26 capital grants which are used to finance capital expenditure are recognised in the Taxation and Non-Specific Grant Income line of the Comprehensive Income and Expenditure Statement.

PAGE | 74 EALING COUNCIL DRAFT STATEMENT OF ACCOUNTS 2025/26

The council has received a number of grants, contributions and donations that have yet to be recognised as income as they have conditions attached to them that will require the monies or property to be returned to the giver. The balances at the year-end are as follows:

CURRENT LIABILITIES

LONG-TERM LIABILITIES

Note 27 Related Parties

The council is required to disclose material transactions with related parties, bodies or individuals that have the potential to control or influence the council or to be controlled or influenced by the council.

Disclosure of these transactions with related parties provides transparency which allows readers to assess the extent to which the council might have been constrained in its ability to operate independently or might have secured the ability to limit another party's ability to bargain freely with the council.

CENTRAL GOVERNMENT

The UK government has significant influence over the general operations of the council – it is responsible for providing the statutory framework within which the council operates, provides a significant amount of its funding in the form of grants, and prescribes the terms of many of the transactions that the council has with other parties e.g., council tax bills, housing benefits. Grants received from government departments are set out in the Grant Income Note 26.

Significant transactions with government departments, precepting and levying bodies, joint arrangements with other bodies, local authorities and the council's Pension Fund are shown and declared elsewhere in the financial statements.

LONDON BOROUGH OF EALING PENSION FUND

The council charged the Pension Fund (the Fund) £1.146m (£0.977m in 2024/25) for expenses incurred in administering the fund. The council owed the Fund net £4.697m at 31 March 2026 (at 31 March 2025 the Fund owed the council £0.177m). The change is mainly due to timings of payments between the related parties. The council remains the single largest employer of members of the Pension Fund and contributed £54.392m to the fund in 2025/26 (£50.782m in 2024/25).

ELECTED MEMBERS

Members of the council are required by section 30 of the Localism Act 2011 and the Relevant Authorities (Disclosable Pecuniary Interests) Regulations 2012, to disclose outside interests and these are recorded in a register (details of these disclosures are recorded on the council's website) and the Code of Conduct for Members operated by the council requires Members to disclose any related interests they have, and to take no part in meetings or decisions on issues which pertain to those related interests. Members of the council have direct control over the council's financial and operating policies. The total of members' allowance paid in 2025/26 is shown in Note 21.

Information relating to councillors has been obtained from their individual Declarations of Interest.

The significant declarations are:

• I nree councillors are on the Mortlake Crematorium Board and one vice chair for the year ended 31 March 2026. The board has £5.550m (£5.075m at 31 March 2025) invested with the council.
• One councillor is the Director of Finance at Villiers High School; there are no material transactions in the year in addition to the schools' grant and services paid.
• A number or members and officers have made declarations of their interests in voluntary organisations which receive grants through council decisions and in positions as school governors. Records of their interests are shown in publicly available records, particularly in the Register of Members Interest which is available on the council website.

REGISTERS OF OFFICERS INTERESTS

A register of chief officers' interests has been established in which their outside interests are recorded. Officers are required to comply with a Code of Conduct for officers and to declare interests and remove themselves from activities which may be a conflict of interests, including procurement.

Chief Officers of the council also hold positions in other organisations. Individual returns are completed by relevant officers of the council. The below table sets out the declarations made by those officers.

OTHER PUBLIC BODIES (SUBJECT TO COMMON CONTROL BY CENTRAL GOVERNMENT)

Ealing Council and the North-West London Integrated Care Board (NHS NWL ICB) agreed to enter into a new partnership in September 2023, to engage in various transactions necessary for the delivery of health and social care services to the local community, establishing a pooled fund permits access to the Better Care Fund (BCF); money from the government.

There are several funds involved in the Agreement. Aligned Funds are where the commissioning and budget/spend remains with the originating organisation but the outcomes the money is spent on are aligned and are reported on as part of the S75 package. The biggest pooled fund is from the Better Care Fund (NWL ICB) and from existing council budgets, comprising of the below contributions:

In 2025/26, BCF plan was reduced by £79.795m. This decrease is due to the following reasons:

• The decrease of the Adult Social Care Discharge Grant to nil and exclusion of the ICB Discharge Funding.
• Removal of the placement budget additional contributions from the local authority.
• An alignment of schemes included in the BCF across NWL.

This is a virtual pool and unlike many other S75 agreements the council will not physically hold the NWL ICB share, nor will it spend money on behalf of the NWL ICB.

The council is the 'host' for the Better Care Fund Pooled Fund (and for many of the other Pooled/Aligned Funds) and the financial monitoring is undertaken by both parties on a quarterly basis.

POOLED FUND MEMORANDUM ACCOUNT FOR EALING COMMUNITY EQUIPMENT SERVICES

The council and North West London Integrated Care Board (NWL ICB), entered into a formal Section 75 pooled budget arrangement for Community Equipment Services with effect from 1 November 2003. The council is the lead for the arrangement. The costs and funding are shown in the table below:

ENTITIES CONTROLLED OR SIGNIFICANTLY INFLUENCED BY THE AUTHORITY

The council has interests in other companies that have the nature of subsidiaries and associates. The council has produced group accounts in 2025/26, and these can be found in the Group Accounts section of the document.

Broadway Living Registered Provider and Broadway Living Limited

The council has a wholly owned subsidiary (Broadway Living Ltd) which was incorporated on 26 March 2014. Broadway Living Limited has a wholly owned subsidiary, Broadway Living RP Limited, which was incorporated on 11 April 2019. The companies have been established to provide more affordable homes over a range of tenures to assist in meeting the borough's current and future housing demand.

Broadway Living Limited

Broadway Living Limited earns income through renting its own residential properties. The council had provided Broadway Living loans with capitalising interest amounting to a total of £11.661m (£11.213m 2024/25). The council has shareholdings to the value of £2.136m in Broadway Living Ltd, this amount remains static, additionally there are 0.879m of intercompany debtors.

Broadway Living Registered Provider

Broadway Living Registered Provider Limited earns income through renting its own residential properties. The council has provided Broadway Living RP Limited with loans amounting to £28.910m with an adjusted expected credit loss of £1.067m (£28.163m 2024/25) and intercompany debtors of 1.377m.

Broadway Living Limited and Broadway Living RP Ltd are included in the Group Accounts section of this document.

Greener Ealing Limited

The council has a wholly owned Local Authority Trading Company (Greener Ealing Limited) which was incorporated on 2 August 2019. Greener Ealing is an Environmental Services company, providing waste, recycling, street cleansing and parking services to the council.

Greener Ealing commenced trading in July 2020, and further details can be found in the Group Accounts section of this document.

Greener Ealing received income of £31.534m (2024/25; £29.163m) from the council for contractual services, which is reflected within the company accounts and have been matched in the inter-company transactions of the consolidation into the group accounts. The council had provided Greener Ealing Limited with loans, at 31 March 2026 there was no outstanding balance of the loans. (2024/25; £0.122m).

Victoria Hall Trust

The council is the corporate trustee of Victoria Hall Trust. The Trust was set up in 1893 accounting for approximately 20% of the site known as Ealing Town Hall. In the 2025/26 financial year the site has been closed and therefore no material transactions are reported in year, there is a debtor held totalling £0.953m at 31 March 2026 (£0.884m 31 March 2025) between the council and Victoria Hall Trust.

Note 28 Capital Expenditure and Capital Financing

The total amount of capital expenditure incurred in the year is shown in the table below, together with the resources that have been used to finance it. Where capital expenditure is to be financed in future years by charges to revenue as assets are used by the council, the expenditure results in an increase in the Capital Financing Requirement (CFR), a measure of the capital expenditure incurred historically by the council that has yet to be financed. The CFR is analysed in the second part of this note.

As a result of the adoption of the lease accounting standard, IFRS16, on 1 April 2024, the capital investment for property, plant and equipment – finance leases and PFI relate to the revaluation of the lease and PFI liabilities as at 1 April 2024.

Note 29 Leases

AUTHORITY AS LESSEE

Right-of-use assets

The council classifies contracts as leases based on their substance. Contracts and parts of contracts, including those described as contracts for services, are analysed to determine whether they convey the right to control the use of an identified asset, through rights both to obtain substantially all the economic benefits or service potential from that asset and to direct its use. Leases are recognised as right-of-use assets with a corresponding liability at the date from which the leased asset is available for use (or the IFRS 16 transition date, if later). This includes arrangements with nil consideration, peppercorn or nominal payment.

*CIPFA has mandated that councils use a modified retrospective approach to adopting IFRS 16. Wherever applicable, opening balances brought forward from 31 March 2024 have been adjusted on transition to IFRS 16 to show restated balances as at 1 April 2024.

Transactions under Leases

The council incurred following expenses and cash flows in relation to leases:

P A G E | 81 EALING COUNCIL DRAFT STATEMENT OF ACCOUNTS 2025/26

Maturity Analysis of Lease Liabilities

The lease liabilities are due to be settled over the following time bands (measured at the undiscounted amounts of expected cash payments).

AUTHORITY AS LESSOR

The council leases out property under operating leases for the following purposes:

• For the provision of community services, such as sports facilities and community centres
• For economic development purposes to provide suitable affordable accommodation for local businesses.

Transactions under leases

The council made the following gains and losses as a lessor during the year:

Note 30 Private Finance Initiative (PFI)

PFI is a mechanism involving a partnership agreement with an external body in order to generate investment in council services. In return for this investment the council pays an annual fee, or unitary charge.

The council has entered into a number of PFI commitments as shown below. These schemes all meet the criteria outlined in the accounting policies and the assets and liabilities are therefore on the council's balance sheet.

EALING SCHOOLS' PFI

In December 2002, the council entered into a design, build, finance and operate contract with Ealing Schools' Partnership Ltd for the provision of school buildings and services for Brentside High, Downe Manor Primary, Gifford Primary and Ravenor Primary. The contract is for 27 years. The value of the unitary charge in 2025/26 was £8.7m (2024/25 £8.6m).

In July 2005, the council entered into a design, build, finance and operate contract with Seafort Ealing Ltd for the provision of school buildings and services for Featherstone Primary, Acton High and Greenford High. The contract is for 25 years. The value of the unitary charge in 2025/26 was £11.6m (2024/25 £11.8m).

STREET LIGHTING PFI

The project involves the renewal and upgrading of street lighting across the borough. Southern Electric Contracting Ltd has taken over the responsibility for the management, design, installation, ongoing repairs and maintenance of the borough's entire street lighting stock from 1 August 2005.

The 25 year contract includes a major capital investment programme for the replacement and renewal of over 20,000 items of highway electrical equipment, with a capital replacement value in excess of £20m. The council is funding the PFI project with the help of a £25m government grant.

The PFI lamp column replacement programme was completed in 2010/11. The value of the unitary charge in 2025/26 was £5.1m (2023/24 £5.0m).

CAREHOME FOR OLDER PEOPLES PFI

The PFI project is for a total of 31.5 years and involves the building and development of 4 new resource centres for Older People including residential and nursing care placements to replace 5 in-house homes.

A PFI credit equivalent to £24m at 2001 prices will be paid over 25 years and used to fund the project with Ealing Care Alliance. The building of the homes was fully completed in 2009.

The value of the unitary charge in 2025/26 was £21.5m (2024/25 £21.0m).

There are four homes, Elm Lodge, opened on the 8 August 2006 with a capacity of 75 beds, Martin House, opened on the 25 February 2008 with a capacity of 77 beds, Sycamore Lodge, opened on the 13 March 2008 with a capacity of 75 beds and Chestnut Lodge, opened on 28 July 2009 with a capacity of 64 beds. Ongoing care costs will be funded through placement budgets.

BUILDING SCHOOLS FOR THE FUTURE (BSF) PFI

On 15 December 2010, the council entered into a BSF PFI contract with Balfour Beatty Education. Balfour Beatty sold their interest to Amber Infrastructure in 2016. This contract provides for new building construction of Dormers Wells High School, followed by ongoing facilities management and lifecycle works over 25 years.

The main work completed in August 2012 and service availability began in September 2012. The value of the unitary charge in 2025/26 was £6.1m (2024/25 £6.0m).

PRIVATE FINANCE INITIATIVE (PFI) PAYMENTS DUE

MOVEMENTS IN PFI ASSETS AND LIABILITIES

Dormers Wells High converted to an Academy in 2017/18, so the Asset for Building Schools for the Future is no longer held on the council's balance sheet. Acton High converted to an academy in 2018/19 and the asset was removed from the Ealing Schools' 2 PFI. The council still holds the PFI liability for both of these.

See Note 9 for details of the movements in year.

Note 31 Defined Benefit Pension Schemes

PARTICIPATION IN PENSION SCHEMES (31A)

As part of the terms and conditions of employment of its officers, the council makes contributions towards the cost of post-employment benefits. Although these benefits will not actually be payable until employees retire, the council has a commitment to make the payments (for those benefits) and to disclose them at the time that employees earn their future entitlement.

At 31 March 2026, the council's principal pension arrangement for its employees was the Ealing Pension Fund, which is part of the Local Government Pension Scheme (LGPS). The LGPS is a funded defined benefit pension arrangement for local authorities and related employers and is governed by statute (principally now the Local Government Pension Scheme Regulations 2013).

The pension scheme is operated under the regulatory framework for the Local Government Pension Scheme and the governance of the scheme is the responsibility of the Pension Fund Panel and the Pensions Board. Policy is determined in accordance with the Pensions Fund Regulations.

RISKS

The principal risks to the council of the scheme are the longevity assumptions, statutory changes to the scheme, structural changes to the scheme (such as large-scale withdrawals from the scheme), changes to inflation, discount rate, bond yields, market prices and the performance of investments held by the scheme.

These are mitigated to a certain extent by the statutory requirements to charge to the General Fund and HRA the amounts required by statute as described in the accounting policies note.

TRANSACTIONS RELATING TO POST-EMPLOYMENT BENEFITS (31B)

The cost of retirement benefits in the reported cost of services is recognised when they are earned by employees, rather than when the benefits are eventually paid as pensions. However, the charge that is required to be made against council tax is based on the cash payable in the year, so the real cost of post-employment/retirement benefits is reversed out of the General Fund via the Movement in Reserves Statement. The following transactions have been made in the Comprehensive Income and Expenditure Statement and the General Fund Balance via the Movement in Reserves Statement during the year.

PENSIONS ASSETS AND LIABILITIES RECOGNISED IN THE BALANCE SHEET (31C)

The amount included in the Balance Sheet arising from the council's obligation in respect of its defined benefit plans is as follows:

*IAS 19 allows for an asset ceiling which is the present value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan.

Reconciliation of the Movements in the Fair Value of Scheme (Plan) Assets:

Reconciliation of Present Value of the Scheme Liabilities (Defined Benefit Obligation):

Change in asset ceiling:

The Pension Fund net liabilities must be reviewed every three years by an actuary and a recovery plan agreed to eliminate any deficit. An actuarial valuation of the London Borough

of Ealing Pension Fund was carried out as at 31 March 2022 to determine the contribution rates with effect from 1 April 2023 to 31 March 2026. Consequently, the 2022 valuation rates are effective as at 1 April 2023.

STATEMENTS LOCAL GOVERNMENT PENSION SCHEME ASSETS COMPRISED (31D)

* These are scheme assets which have quoted prices in active markets.

BASIS FOR ESTIMATING ASSETS AND LIABILITIES (31E)

Liabilities have been assessed on an actuarial basis using the projected unit credit method, an estimate of the pensions that will be payable in future years dependent on assumptions about mortality rates, salary levels, etc.

The Local Government Pension Scheme has been estimated by Mercer Limited, an independent firm of actuaries, estimates for the council fund being based on the latest full valuation of the scheme as at 1 April 2022.

The significant assumptions used by the actuary have been:

The estimation of the defined benefit obligation is sensitive to the actuarial assumptions set out in the table above. The sensitivity analysis below have been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting period and assumes for each change that the assumption analysed changes while all the other assumptions remain constant.

The assumptions in longevity, for example, assume that life expectancy increases or decreases for men and women. In practice, this is unlikely to occur, and changes in some of the assumptions may be interrelated.

The estimations in the sensitivity analysis have followed the accounting policies for the scheme, on an actuarial basis using the projected unit credit method.

The methods and types of assumptions used in preparing the sensitivity analysis below did not change from those used in the previous period.

*The figures above exclude the impact of the asset ceiling

IMPACT ON THE AUTHORITY'S CASH FLOWS (31F)

The objectives of the scheme are to keep employers' contributions at as constant a rate as possible. The council has agreed a strategy with the scheme's actuary to achieve a funding level of 100% over the next 9 years. Funding levels are monitored on a quarterly basis.

The latest triennial valuation of the Fund was carried out by Mercer, the Fund's Actuary, as at 31 March 2022 in accordance with the Funding Strategy Statement of the Fund and Regulation 36 of the Local Government Pension Scheme (Administration) Regulations 2008.

The scheme will take into account of the national changes to the scheme under the Public Pensions Services Act 2013. Under that Act, the Local Government Pension Scheme in England and Wales and the other main existing public service schemes may not provide final salary benefits in relation to service after 31 March 2014.

The Act provides for scheme regulations to be made within a common framework, to establish new career average revalued earnings schemes to pay pensions and other benefits to certain public servants.

The expected contributions to the plan for the next annual reporting period for 2025/26 is £30.505m.

The weighted average duration of the defined benefit obligation for scheme members is 17 years, 2025/26 (17 years 2024/25).

Note 32 Pensions Schemes Accounted for as Defined Contribution Schemes

Teachers employed by the council are members of the Teachers' Pension Scheme administered by the Teachers Pensions Agency (TPA), and those employees working in public health that transferred in from the NHS are members of the NHS Pension Scheme. These provide employees with defined benefits upon their retirement and the council contributes towards the costs by making contributions based on a percentage of members' pensionable salaries.

Although both schemes are unfunded, they use a notional fund as the basis for calculating the employer's contribution rate to be paid by all local education authorities/NHS bodies. However, it is not possible for the council to identify a share of the underlying assets and liabilities of either scheme attributable to its own employees. For the purposes of this statement of accounts, they are therefore accounted for on the same basis as a defined contribution scheme.

TEACHERS PENSION AGENCY

In 2025/26 the council has paid £32.95m (2025/26 £31.33m) to the Teachers Pensions Agency in respect of teachers' retirement benefits, which represented 28.68% of pensionable pay in 2025/26 (2024/25 23.68%). At 31 March 2026 the pension contributions due to the scheme in respect of the salaries were £2.234m (£2.67m as at 31 March 2025). The teachers' pensions employer's contributions due to be paid in the next financial year are estimated to be £35m.

The council is responsible for the costs of any additional benefits awarded upon early retirement outside the terms of the scheme. In addition, the council is responsible for all pension payments relating to added years it has awarded, together with the related increases.

NHS PENSION SCHEME

In 2025/26, the council has paid £0.019m (2024/25 £0.019m) to the NHS Pension Scheme in respect of public health employees' retirement benefits, which represented 14.38% of their pensionable pay for the year (14.38% in 2024/25). At 31 March 2026, the pension contributions due to the scheme in respect of the March 2026 salaries were £0.002m (£0.002m as at 31 March 2025). The NHS pensions employer's contributions due to be paid in the next financial year are estimated to be £0.020m.

The council is responsible for the costs of any additional benefits awarded upon early retirement outside the terms of the NHS Pension Scheme.

Note 33 Contingent Assets and Liabilities

CONTINGENT LIABILITIES

The council has identified no material contingent liabilities.

CONTINGENT ASSETS

The council has identified one potential contingent asset relating to a development contract. The estimated value of the claim is £4m.

Note 34 Nature and Extent of Risks arising from Financial Instruments

THE FAIR VALUES OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES THAT ARE NOT MEASURED AT FAIR VALUE (BUT FOR WHICH FAIR VALUE DISCLOSURES ARE REQUIRED) (34A)

The council's overall risk management programme focuses on the unpredictability of financial markets, and seeks to minimise potential adverse effects on the resources available. Risk management is carried out by a central treasury team under policies approved by the full council in the annual treasury management strategy report. The procedures for risk management are set out through a legal framework underpinned by the Local Government Act 2003 and associated regulations. These require the council to comply with the CIPFA Prudential Code, the CIPFA Code of Practice on Treasury management in the Public Services and investment guidance issued through the Act. Overall, these procedures require the council to manage risk actively. The annual treasury management strategy for 2025/26, which incorporates the prudential indicators was approved by council on 04 March 2025 and is available on the council's website.

The council's activities expose it to a variety of financial risks. The key risks are:

• Credit Risk – the possibility that other parties might fail to pay amounts due to the council
• Liquidity Risk – the possibility that the council might not have funds available to meet its commitments to make payments
• Re-financing Risk – the possibility that the council might be requiring to renew a financial instrument on maturity at disadvantageous interest rates or terms
• Market Risk – the possibility that financial loss may arise for the council as a result of changes in such measures as interest rates and stock market movements.

Credit Risk - Investments

Credit risk arises from deposits with banks and financial institutions, as well as credit exposures to the council's customers.

This risk is minimised through the Annual Investment Strategy, which is available on the council's website.

The council invests its cash balances on the basis of security first and returns second. As part of this prudent approach officers keep a daily watch on the council's investments, drawing upon the advice of experts whilst remaining cognisant of emerging economic themes that may pose risks from other sources including the financial press. This includes subscribing to the creditworthiness service provided by Link Asset Services.

The council's credit risk management practices are set out in the Annual Investment Strategy, with particular regard to determining whether the credit risk of financial instruments has increased significantly since initial recognition.

The Annual Investment Strategy requires that deposits are not made with financial institutions unless they meet identified minimum credit criteria, in accordance with either Fitch, Moody's and Standard & Poors Credit Ratings Services. The Annual Investment Strategy also considers maximum amounts and durations with a financial institution located in each category.

This council uses the creditworthiness service provided by Link Asset Services. This service uses a sophisticated modelling approach with credit ratings from all three rating agencies - Fitch, Moody's and Standard and Poor's, forming the core element. However, it does not rely solely on the current credit ratings of counterparties but also uses the following as overlays:

• credit watches and credit outlooks from credit rating agencies
• Credit Default Swap spreads to give early warning of likely changes in credit ratings
• sovereign ratings to select counterparties from only the most creditworthy countries

The full Investment Strategy for 2025/26 was approved by Full Council on 04 March 2025 and is available on the council's website.

The council's maximum exposure to credit risk in relation to its investments in financial institutions of £279.013m cannot be assessed generally as the risk of any institution failing to make interest payments or repay the principal sum will be specific to each individual institution. Recent experience has shown that it is rare for such entities to be unable to meet their commitments. A risk of irrecoverability applies to all of the council's deposits, but there was no evidence at the 31 March 2026 that this was likely to crystallise.

AMOUNTS ARISING FROM EXPECTED CREDIT LOSSES (34B)

The council has reviewed all financial assets and determined that the credit risk exposure on investments has been reviewed and calculated on a 12-month basis, which has been deemed immaterial for the financial assets held as at 31 March 2026.

CREDIT RISK EXPOSURE (34C)

The table below shows the council's exposure to credit risk as at 31 March 2026. This is not the recognised credit losses but outlines the exposure only:

The above does not include short term investments with local authorities or government as the Code does not allow a loss allowance to be recognised since statutory provisions prevent default.

Credit Risk – Receivables

Trade receivables arise from the provision of goods and services and the carrying out of the council's functions. The impairment loss allowances shown in Note 13 reflect the credit quality of the debtors. These have been calculated for each service or debt type (such as adult social care, parking or sundry debt), by reference to the council's historic experience of default with an adjustment for current and forecast economic conditions specific to each area. The impairment loss allowances for receivables are reviewed annually.

Debts owed from central government and other public bodies are excluded from impairment losses and credit risk.

COLLATERAL AND OTHER CREDIT ENHANCEMENTS (34D)

During the reporting period the council held no collateral as security.