Lampton Group Review Targets Break-even Next Year

Council hoping financial drain from its companies can be reduced

The group runs services including waste and recycling, housing management, parks and green spaces, repairs to council homes and leisure centres

February 6, 2026

Hounslow Council’s network of wholly owned companies is expected to return to financial stability from next year after several difficult years, under a new three-year business plan that aims to move the group from losses into profit while continuing to deliver core public services across the borough.

A report going before the council’s cabinet later this month sets out the Lampton Group Business Plan for 2026 to 2029, which focuses on stabilising finances, strengthening governance and improving customer service following what senior figures describe as a necessary “reset” in 2024 after mounting financial pressures .

The Lampton Group — which runs services including waste and recycling, housing management, parks and green spaces, repairs to council homes and leisure centres — is forecast to break even in 2026/27 before generating profits of around £500,000 in 2027/28 and £1 million in 2028/29 .

The turnaround comes after the group is expected to record a £2.1 million loss in the current financial year, highlighting the scale of the challenge facing council-owned companies as local authorities across the country grapple with rising costs, inflation, and tightening budgets.

Council leader Shantanu Rajawat, who is presenting the report, said the new plan represents a shift towards longer-term financial resilience, moving away from shorter annual planning cycles that had previously dominated.

At the heart of the financial recovery plan is a more cautious approach to growth, with expansion driven primarily by council-commissioned work rather than riskier external contracts. The group will also pursue operational efficiencies and productivity improvements to reduce costs while maintaining service standards.

Different arms of the Lampton Group are expected to contribute in different ways. Lampton Recycle 360, which provides waste, recycling and food collections to around 115,000 households and runs the borough’s materials handling facility in Southall, is forecast to generate rising profits over the next three years while continuing to cut carbon emissions through the use of renewable HVO fuel in refuse vehicles .

Lampton Greenspace 360, responsible for maintaining nearly 200 parks and open spaces, allotments and nature reserves, is also expected to move into surplus, helping fund environmental improvements and maintain quality standards such as Green Flag awards .

Coalo, the council’s housing repairs and maintenance company, will carry out around 36,000 repairs a year, with a focus on closer integration with council housing services to improve performance and safety.

Meanwhile Lampton Leisure will continue operating six leisure centres across Hounslow, delivering public health programmes alongside commercial fitness services, although it is expected to broadly break even rather than generate large profits.

The one company still forecast to remain in deficit is Lampton Investment 360, which manages more than 600 homes owned by the council. Losses are projected to reduce gradually, supported by rent reviews, cost reductions and potential disposal of low-yield properties to strengthen the company’s finances .

Council officers stress that the housing arm represents a long-term investment backed by property assets, with loan-to-value ratios expected to improve significantly over the next two years.

The group has also overhauled its governance structure, introducing a single group board in late 2025 to improve oversight and accountability, alongside an independent audit and risk committee.

The move mirrors reforms being adopted by councils nationally, following high-profile failures of local authority trading companies in recent years which left some councils exposed to heavy financial losses.

Beyond the balance sheet, the business plan places strong emphasis on social value, including local employment, apprenticeships and procurement from borough-based firms. Resident feedback and service performance data have also been used to shape future priorities, with digital tools expected to play a bigger role in improving access and responsiveness.

Environmental targets feature prominently, with the group aiming for ISO 14001 environmental management accreditation and further reductions in emissions from waste services to support Hounslow’s climate emergency commitments .

The council says no new financial investment is being sought to deliver the plan and that Lampton Group does not anticipate needing additional cashflow support, though the financial risks of wholly owned companies remain on the council’s corporate risk register.

Responding to the new Lampton business plan, Cllr Jack Emsley, Conservative councillor for Chiswick Homefields, said: “Far from turning the ship around, Lampton’s new business plan states that it will see cumulative losses go even higher than at this point last year. This plan wasn’t presented to the council’s cross-party scrutiny committee, and is likely to be waved through cabinet with minimal discussion. Labour councillors are continuing to shirk their responsibility to properly oversee this group of companies, and it’s exposing all of us in this borough to financial risk.”

If cabinet approves the plan in February, progress against financial targets and service improvements will be monitored quarterly by the council’s shareholder committee.

Senior officers describe the strategy as a critical step in restoring confidence after a turbulent period and ensuring that council-run services can remain both financially viable and focused on residents’ needs.