Your Council Tax and Business Rates for 2024-25 and our performance and spending plans

RBKC’s Budget and Council Tax Requirement for 2024/25

The Council will spend £462 million in 2024/25 on a wide range of day-to-day local services such as:

  • social care
  • the environment
  • leisure facilities
  • highways
  • transport services
  • housing needs
  • education and skills development

The charts and table below show the full breakdown of the budget (this excludes Housing Benefit payments and dedicated schools grant which are reimbursed by Government). 

  2023-24 2024-25
  Net £'000 Spend £'000 Income £'000 Net £'000
Adult Social Care 38,319 83,163 (37,933) 45,230
Public Health 0 27,312 (27,312) 0
Children's Services 47,195 72,425 (22,970) 49,455
Environment and Neighbourhoods 23,658 96,291 (77,394) 18,898
Housing and Social Investment 26,238 88,871 (68,311) 20,560
Resources and Customer Delivery 19,548 69,585 (54,180) 15,405
Chief Executive 4,557 17,943 (5,290) 12,653
Grenfell Recovery 8,169 5,747   5,747
Delivery of Grenfell work 0 680   680
Total Service Costs 167,684 462,018 (293,390) 168,628
Levies 9,824 11,646 0 11,646
Grenfell Corporate 1,596 1,180 0 1,180
Social Care Contingency 0 1,805   1,805
Provision for inflation 11,624 12,050   12,050
Capital, interest, and investment income (8,336) 7,232 (5,643) 1,588
Transfers to/from Reserves 3,002 9,354 (10,415) (1,061)
Budget Requirement 185,394 505,284 (309,448) 195,836
Social Care Grant and New Homes Bonus (8,544)       (18,374) (18,374)
Retained Business Rates (includes Revenue Support Grant) (68,555)   (70,437) (70,437)
Collection Fund  852   (2,000) (2,000)
New and additional grants (10,617)   (368) (368)
Total external funding (86,864) 0 (91,179) (91,179)
Council Tax Requirement 98,530     104,657
Council Taxbase 97,732     98,878
Council Tax per Band D without Garden Square levies 988.26     1,037.58
Greater London Authority Precept 434.14     471.40
Total Band D Council Tax 1,422.40     1,508.98
         
Council Tax per Band D with Garden Square levies 1,008.15     1,058.45
Greater London Authority Precept 434.14     471.40
Total Band D Council Tax 1,422.40     1,529.85

The Council Tax requirement


The Council Tax requirement after taking into account all income and Government funding is £104.7 million. This is an increase of £6.1 million from 2023/24 broken down as follows:

Budget Change  £'000
Social Care Pressures and Contract Inflation 2,710
Creation of Social Care Contingency     1,805
Provision for (non-social care) Contract Inflation     4,849
Provision for pay inflation 2024-25     4,495
Provision for extra pay award in 2023-24     1,594
Provision for additional contract inflation in 2023-24    493
Changes in funding of the Council’s Grenfell recovery work*    (2,500)
Increased borrowing costs due to higher interest rate environment and capital programme review and reduced investment income     8,874
Increase in External Funding      (6,222)
Increase in Fees and Charges Income     (2,547)
Increase in levy charges     1,824
Service Growth Pressures      6,412
Service Savings      (7,969)
Corporate Budget Savings     (4,669)
Reduction in Collection Fund Deficit     (919)
Reduction in transfer to reserves     (4,444)
Transfer to Ward Implementation and Reorganisation Reserve     2,104
Other 238
Total Increase in Council Tax Requirement     6,128
Increase in Council Tax Base     (284)
Extension of empty homes Council Tax Premium     (871)
Total Change funded by increase in Council Tax     
 
4,973

The Grenfell Recovery Programme (2019-24) was funded from a ringfenced budget of £50m committed in 2019. The programme will begin to come to an end in 2024. From 2024/25, the Council and other parties have committed additional funding for support to bereaved, survivors and the immediate local community from 2024-28. This will be funded separately.

The diagram illustrates how each £100 of Council Tax is allocated to different areas of spending for 2024-25. There are eight areas, each represented by a different coloured coin. The largest coin is red and represents Children’s Services, which receives £28 out of £100. The next largest coin is dark blue and represents Adult Social Care, which receives £26. The yellow coin represents Housing and Social Investment, which receives £14. The green coin represents Environment and Neighbourhoods, which receives

What the Council spends on

The diagram ‘How each £100 of Council Tax is spent’,  illustrates how each £100 of Council Tax is allocated to different areas of spending for 2024/25. There are 8 areas, and each of the areas receives the following amounts out of each £100 spent by the Council:

  • Children’s Services receives £28 
  • Adult Social Care receives £26 
  • Housing and Social Investment receives £14 
  • Environment and Neighbourhoods receives £10
  • Resources and Customer Delivery receives £8
  • Communities and Chief Executive receives £7 
  • London-wide payments and levies receives £6
  • Council Plan Implementation – Ward Improvements receives £1

The diagram shows how different sources of funding contribute to every £100 of income for 2024-25. There are eight areas, each with a different coloured coin. The biggest coin is dark blue and shows Government and Other Grants, which give the council £31 for every £100 income. The next biggest coin is orange and shows Council Tax, which gives £17. The red coin shows Dedicated Schools Grant which gives £13 of income. The green coin shows Business Rates and Revenue Support Grant, which give £11. The purple co

How is it paid for?

Council Tax is just one source of the Council’s income. The diagram ‘Sources of funding per £100 of income’ shows sources of funding per £100 of income as follows:

  • Government and Other Grants give the Council £31 
  • Council Tax gives £17
  • Dedicated Schools Grant gives £13 
  • Business Rates and Revenue Support Grant give £11 
  • Rental Income - the Council gets £8  
  • Parking income gives £8 
  • Fees and Charges give £7 
  • Other Income gives £5 

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Capital Expenditure – Investment into the borough’s homes, roads, schools, leisure facilities.

The ‘Capital expenditure’ diagram shows how the money for capital spending in the borough is split by themes for 2024/25.

The total sum for capital spending is £80.069m. This is divided as follows:

  • £38.278m for the housing sector - new homes and temporary accommodation.
  • £18.436 is spent on schools
  • £3.932m is spend on other property
  • £919k allocated for highways
  • £6.692m is spent on the environment
  • £500k for early years
  • £1.813m for parks
  • £175k for libraries
  • £160k for Children’s Social Care
  • £5.941m for Adult Social Care
  • £70k for other capital spending
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How the Council's capital expenditure will be funded in 2024/25

The ‘Capital funding’ diagram shows the expected funding sources for the Council's general fund capital spending of £80.069m in 2024/25.

Borrowing will provide £53.733m of the funds. Capital grants and contributions will supply £17.944m. Section 106 and Community Infrastructure Levy contributions will make up £6.649m. Revenue contributions to Capital Outlay will contribute £1.679m. Lastly, the Council will use £64k of earmarked reserves.

Looking beyond 2024-25

The Council has set a balanced budget for the 2024/25 financial year, however there are many challenges ahead. The forecasted budget gap is set to reach between £19m and £32m over the 3 years from 2025/26 depending on the future of Government grants and funding. Further details on how the Council is addressing these challenges, our pressures and risks over the next few years are set out in the budget report.

Last updated: 8 March 2024