Council Tax 2026/27 – What’s Changing and Why
Thank you for participating in the recent local elections. Regardless of whom you voted for, this Council is here for you.
I know most people do not spend their free time thinking about local government. You’re busy with work, family, friends and everything else life throws at you. But council tax affects your monthly budget and the services around you, so I want to explain clearly what is happening this year and why.
We have kept increases as low as possible in recent years because we believe your money is best kept in your pocket. This year is a little different.
In April, your council tax increased by 4.99%. For an average Band D home, that is about £1 extra per week.
The Government has fundamentally changed how councils are funded. As a result, inner London boroughs like ours are facing a significant reduction in funding. Over the next four years, we expect to lose £108 million - more than 40% of the part of the budget we directly control.
That leaves councils with two basic choices: make major cuts to services or raise council tax significantly. We have worked hard to avoid both as far as possible.
This year’s budget includes nearly £21 million in efficiency savings, a record for this council. This includes simplifying processes, modernising systems, reducing our office footprint and running a voluntary redundancy programme for staff. Independent analysts have named us the most productive council in the country, justifying our approach.
However, the funding gap is simply too large to close through savings alone. In addition to the 4.99% increase, council tax support will reduce by 10%, and a 100% premium will apply to second homes.
Throughout this process, we listened to residents. Nearly 1,000 people responded to our consultation, and the message was clear: protect the services that matter most.
That means there will be no changes to twice-weekly bin collections, street cleaning, our parks, or borough-wide parking permits. Our Adult Social Care and Children’s Services have both received Outstanding ratings, placing them among the very best in the country, and we are determined to maintain those standards.
We are also continuing to invest in the borough’s future.
Plans include a new park and pier at Cremorne in Chelsea, improvements to Portobello Road and other public spaces, and step-free access at South Kensington Station. Major housing developments such as Kensal Canalside will deliver 2,500 new homes, including 500 affordable rental homes, alongside redevelopment at Earl’s Court and Lots Road.
We are also improving adult social care accommodation, with plans for a new day centre, additional high-needs accommodation and new homes at Barlby Road.
The reality is that the scale of funding reductions means we must adapt. We will need to innovate, modernise and make careful decisions. But our commitment remains the same: to protect vital services and continue investing in the priorities that matter to residents.
Thank you for playing your part in making this borough such a great place to live. We’re grateful for the trust you place in us to manage and care for the borough on your behalf. We do not take that responsibility lightly, and we remain committed to delivering the high standards you expect.
Yours sincerely,
Cllr Elizabeth Campbell
Leader
Kensington and Chelsea Council