Councillor Thalassites opened the debate with the following points:

•       He highlighted the overspending of £700m by London’s councils in 2024/25, with £270m attributed to temporary accommodation costs. Kensington and Chelsea faced significant financial pressures, including social care and temporary accommodation.

•       The budget would allocate £12m to Grenfell recovery, maintain the principle of participatory budgeting and improve complaints performance.

•       He had visited various sites, such as Hewer Street and Bute Street, which illustrated successful projects and ongoing works.

•       The budget would ringfence funds for new Council homes at Barlby Road and a new riverside open space in Chelsea. It also aimed to minimise costs to residents, reduce barriers to services, and implement digital projects to keep costs down.

•       The budget projected savings of £16m for the next year, building on previous savings while continuing to keep Council Tax low.

•       He criticised the Government's tax hikes, with specific mention of increased costs due to increases in employer national insurance contributions.

•       The administration’s budget prioritised low taxes, investment in public services, and support for vulnerable households.

•       The proposals protected the Council Tax Reduction Scheme, and the additional support payments to low-income households: £50 each to the 15,000 lowest income households and the £100 rebate.

•       The budget aimed to make the borough greener, safer, and fairer, with investments in new trees, CCTV cameras, and affordable housing.

Councillor Ali made the following comments:

·                   He acknowledged the efforts of the majority party group, hinting at potential leadership challenges in the future and he thanked the officers for their support in the budget process, highlighting the financial journey that began the previous year.

·                   He referred to the challenges faced in opposing the majority group’s team's budget cuts and emphasised the importance of maintaining services.

·                   Councillor Ali stressed the significance of making the Royal Borough of Kensington and Chelsea the best borough for living, working, and studying, and thanked the officers for their continued support.

·                   He highlighted the financial proposals in the amendment, including £28.8 million in capital and revenue proposals and he criticised the financial mismanagement of the previous administration and expressed hope for a Labour-run Council.

·                   He emphasised the importance of community safety, education, health, and housing, and outlined specific measures to support these areas.

·                   Councillor Ali proposed a £1.5 million investment in community entrepreneurship to address economic inequality in the borough.

·                   He called for better transport links and step-free access at Ladbroke Grove station, proposing a £13.5 million investment for this purpose.

·                   He advocated implementing a premium tax on second homes to raise £11 million for borough services and concluded by quoting former US President Joe Biden, emphasising that a budget reflects values and priorities.

Labour and ungrouped Members’ amendments to the Revenue Budget, Capital Programme and Council Tax

Councillor Ali moved formally, and Councillor Lari seconded the Labour Group’s amendments after which Councillor Adam moved formally, and councillor Jedut seconded the ungrouped members’ amendments.

A debate among Councillors on the revenue budget, capital programme, and Council Tax then ensued, with contributions from Councillors Adam, Adourian, Benton, Dent Coad, Faulks, Hammond, Hargreaves, Jedut, Kemahli, Lari, Nur, Rendall, Simmons, Taylor-Smith, Thaxter, Wade, Weale, Will, and Yankson.

Councillor Adam had no further comments on the ungrouped Members’ amendment and Councillor Lari summed up the debate on the Labour Group’s amendments. Councillor Thalassites summed up the budget debate.

The Mayor then advised the Council that the vote on the two amendments, the budget and Council Tax needed to be recorded in the minutes.

Vote on the Labour Group’s amendment to the revenue and capital budgets and Council Tax.

The Mayor put the Labour Group’s amendment to the vote, and the voting was as follows:

For: eight

Councillors, Ali, Dent Coad, Elnaghi, Jedut, Lari, Nur, Simmons, Thaxter.

Against: thirty

Councillors Adam, Addenbrooke, Adourian, Areti, Bennett, Campbell, Evans, Faulks, Gardner, Hammond, Hargreaves, Hudd, Husband, Isse, Kemahli, Knight, Mackover, McVeigh, North, Pascall, Petit, Rendall, Rossi, Schmetterling, Taylor-Smith, Thalassites, Weale, Weeden-Sanz, Will, and Zvedeniuk.

Not Voting or abstaining: four

Councillors Burns (Deputy Mayor), Lane (Mayor), Verboven, and Wade.

The Mayor declared the amendment lost.

Vote on the ungrouped Members’ amendment to the revenue and capital budgets and Council Tax.

The Mayor put the ungrouped Members’ amendment to the vote, and the voting was as follows:

For: two

Councillors Adam and Jedut.

Against: thirty-six

Councillors Ali, Addenbrooke, Adourian, Areti, Bennett, Campbell, Dent Coad, Elnaghi, Evans, Faulks, Gardner, Hammond, Hargreaves, Hudd, Husband, Isse, Kemahli, Knight, Mackover, McVeigh, North, Nur, Pascall, Petit, Rendall, Rossi, Schmetterling, Simmons, Taylor-Smith, Thalassites, Thaxter, Weale, Weeden-Sanz, Will, and Zvedeniuk.

Not Voting or abstaining: four

Councillors Burns (Deputy Mayor), Lane (Mayor), Verboven, and Wade.

The Mayor declared the amendment lost.

Vote on the Revenue Budget, Capital Budget, and Council Tax 2025/26

The Mayor put the recommendations set out in paragraphs 2.1 and 2.2 of the covering report from the Leadership Team to the vote, and the voting was as follows:

For: twenty-nine.

Councillors Addenbrooke, Adourian, Areti, Bennett, Campbell, Evans, Faulks, Gardner, Hammond, Hargreaves, Hudd, Husband, Isse, Kemahli, Knight, Mackover, McVeigh, North, Pascall, Petit, Rendall, Rossi, Schmetterling, Taylor-Smith,Thalassites, Weale, Weeden-Sanz, Will, and Zvedeniuk.

Against: eleven.

Councillors Adam, Ali, Dent Coad, Elnaghi, Jedut, Lari, Nur, Simmons, Thaxter, Verboven and Wade.

Not Voting or abstaining: two

Councillors Burns (Deputy Mayor), and Lane (Mayor).

Council RESOLVED that the Revenue Budget, Capital Budget, and Council Tax 2025/26, as set out in paragraphs 2.2 and 2.3 of the covering report from the Leadership Team, be approved.