Council tax

Council tax in Kensington and Chelsea will rise by just 2.5 per cent in 2008-09 the Council’s Cabinet agreed in March – the first council tax rise seen in the Royal Borough since 2005-06.

The Council will receive £102 million from the Government in 2008-09, a two per cent increase on the current year and well below inflation.

Changes to the complex formula used to calculate local government grants mean that Kensington and Chelsea is likely to receive even less than two per cent in the next two years.

To help it make the right choices the Council has drawn on the views and advice of nearly 700 residents who took part in consultations on where the balance should lie between protecting services and increasing the council tax.

The Cabinet identified four priorities that, despite the Council’s worsening financial prospects, will attract additional funding.

These are children’s services; services that maximise choice and independence for children with disabilities and vulnerable adults; tackling crime and antisocial behaviour and finally the environment.

Rather than raise the cost of this extra spending entirely via the council tax, the Royal Borough intends to reduce its own running costs.

In 2008-09 alone it is aiming for savings of £4.9 million.

It is this that enables the Cabinet to hold the council tax increase to around the rate of inflation.

Together with the council tax freeze the Royal Borough has been enjoying over the past two years, this means council tax in Kensington and Chelsea will remain amongst the lowest in the country.

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