Kensington and Chelsea Council is considering a rise of up to 70% in its share of council tax for 2027/28 as it prepares to consult residents on its finances.
The increase is one of several scenarios in a budget report, not an agreed charge. The council’s leadership team is due to discuss the proposals on 11 November, with a consultation planned to run from 12 November to 6 January. The final council tax decision is due when the full council sets its budget in March 2027.
The report compares the previously assumed annual increase of 5% with rises of 65% or 70% in 2027/28, followed by 5% a year in the later years of the financial plan. The larger options would apply to the council’s own charge; a household’s total bill also includes a separate Greater London Authority charge.
What the options could mean
For 2026/27, the borough’s Band D charge is £1,132.93 before garden square levies, while the Greater London Authority charge is £510.51. These are current figures, not the amounts that will necessarily apply next year. The effect on an individual household will depend on the final charges, the property’s band and any applicable discounts or support.
The council says existing eligible claimants under its Council Tax Reduction Scheme would continue to receive the same percentage reduction, so the cash value of that support would rise if the charge increased. A household receiving a partial reduction could nevertheless have more to pay.
Deputy leader and finance lead Emma Will acknowledged that the prospect of a 70% increase would be deeply worrying for residents. She said the council faced difficult choices after changes to government funding and would listen to residents before deciding what to do.
The budget forecasts
The council’s report says its financial resources are expected to fall by more than £100 million as a result of funding reform. It also identifies inflation, rising demand for services and other costs as pressures. These figures are forecasts, not a statement that the whole reduction has already happened.
Before savings or council tax decisions, officers estimate a budget gap of £53.9 million in 2027/28 and £178 million across the four years to 2030/31. The plan identifies £65.3 million in savings over those four years, including £23.7 million in the first year. The total includes about £9.9 million in previously approved savings and £55.4 million in new proposals. Some £29.7 million sits within cross-cutting transformation programmes and has not yet been allocated to individual service budgets.
The report warns that there are risks to delivering the savings in full. It says further work is needed to develop detailed business cases and confirm whether they can be achieved.
Even after the savings proposals, the council’s modelling shows a remaining gap of about £90.1 million over the four-year plan if council tax rises by 5% each year. The 65% and 70% scenarios would substantially reduce or eliminate the modelled gap and allow money to be put into a transition reserve, subject to the assumptions in the plan and the delivery of savings. They are forecasts rather than guaranteed outcomes.
Services and consultation
The savings schedule includes a proposed reduction in the home library service, with greater use of voluntary or delivery partners. The council’s initial equality assessment says reducing or ceasing that service could have negative effects on people who cannot visit a library, including older and disabled residents. It says the proposals will be reassessed after engagement and consultation.
The council also proposes investment in technology and cyber resilience following the attack on its systems in November 2025. The report asks the leadership team to agree £19.1 million from reserves for one-off digital investment over the period to 2028/29.
Kensington and Chelsea was among four London councils that submitted a formal challenge to the funding reforms in October. The Government has defended its changes, saying the previous system gave some wealthy areas exceptionally high support while communities facing greater pressures lost out. The challenge did not itself change the funding settlement.
The Government says it intends not to set the usual council tax referendum threshold for the borough in 2027/28 and 2028/29, which would allow increases above the normal threshold without a local referendum. The forthcoming budget consultation is planned before scrutiny and the final decision by councillors; neither the tax increase nor the new savings proposals is settled.
Featured image: AI-generated illustration.
