Your Council Tax and business rates for 2025 to 2026 and our performance and spending plans

RBKC’s budget and Council Tax requirement for 2025 to 2026

The Council will spend £426 million in 2025 to 2026 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). 

  2024 to 2025 2025 to 2026
  Net £'000 Spend £'000 Income £'000 Net £'000
Adult Social Care 45,230 84,270 (37,976) 46,294
Public Health 0 27,442 (27,442) 0
Children's Services 49,455 71,933 (23,025 48,908
Environment and Neighbourhoods 18,898 102,285 (83,725) 18,560
Housing and Social Investment 20,560 78,723 (56,441) 22,282
Resources and Customer Delivery 15,405 29,439 (16,649) 12,790
Chief Executive 12,653 17,597 (4,478) 13,119
Grenfell Recovery 5,747 2,810   2,810
Delivery of Grenfell work 680 1,277   1,277
Total Service Costs 168,628 426,277 (249,736) 176,541
Levies 11,646 12,555 0 12,555
Corporate items (inflation,
NI increase,  corporate savings, corporate contingency) 		 12,050 16,699 0 16,699
Social Care Contingency 1,805 1,831   1,831
Grenfell corporate 1,180 1,098   1,098
Capital, interest, and investment income (1,588) 13,453 (8,084) 5,368
Transfers to/from reserves 1,061 8,820 (2,810) (6,101)
Budget requirement 195,836 480,732 (260,630) 220,102
Social Care Grant and New Homes Bonus (18,374)      (21,712) (21,712)
Retained business rates (includes Revenue Support Grant) (70,437)   (71,492) (71,492)
Collection Fund  (2,000)   (2,000) (2,000)
New and additional grants (368)   (4,844) (4,844)
Total external funding (91,179) 0 (111,515) (111,515)
Council Tax requirement 104,657     108,587
Council Taxbase 98,878     98,606
Council Tax per Band D without Garden Square levies 1,037.58     1,079.08
Greater London Authority Precept 471.40     490.38
Total Band D Council Tax 1,508.98     1,569.46
Council Tax per Band D with Garden Square levies 1,058.45     1,101.21
Greater London Authority Precept 471.40     490.38
Total Band D Council Tax 1,529.85     1,591.59

Council Tax requirement

The Council Tax requirement after taking into account all income and Government funding is £108.6 million. This is an increase of £4 million from 2025 to 2026 broken down as follows:

Budget Change  £'000
Social Care pressures and contract inflation 3,810
Social Care Contingency     3,727
Provision for (non-social care) contract Inflation     2,888
Provision for pay inflation 2025 to 2026     2,530
Impact of increased employers NI   4,236
Government funding for employers NI     (1,733)
Financing of capital programme  3,354 
 Increase in External Funding   (7,136) 
Increase in fees and charges income     (1,283) 
Increase in levy charges     909
Service Growth Pressures      10,792
Service Savings      (13,182) 
Corporate Budget Savings     (3,161) 
Pension Fund saving  (225) 
Reduction in transfer to reserves     (9,354) 
Transfer to Budget Stabilisation Reserve    8,614 
Other (857) 
Total Increase in Council Tax Requirement     3,929
Reduction in Council Tax Base   297
Total Change funded by increase in Council Tax      4,226
he diagram illustrates how each £100 of Council Tax is allocated to different areas of spending for 2025-26. There are seven areas, each represented by a different coloured segment. The largest segments are light blue and green and represents Adult Social Care and Children’s Services respectively. which both receive £27 out of £100. The next largest segment is orange and represents Housing and Social Investment, which receives £16. The red segment represents Clean streets, parks and waste collection, which

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 2025 to 2026. There are seven areas, and each of the areas receives the following amounts out of each £100 spent by the Council:

  • Children’s Services receives £27 
  • Adult Social Care receives £27
  • Housing and Social Investment receives £16
  • Clean Streets, Parks and Waste Collection receives £10
  • Customer and Corporate Services receives £6
  • London-wide payments and levies receives £7
  • Communities receives £7

The diagram shows how different sources of funding contribute to every £100 of income for 2025-26. The picture shows a half circle, divided into 8 segments to make up the £100 of the income. The teal segment represents Government and other grants, making up £32 of income source. The green segment represents Council Tax, contributing £17. The light blue segment is for Business rates and revenue support grant, which contributes £11. The red segment is for Schools grant from government, which makes up £12 of t

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 £32
  • Council Tax gives £17
  • Dedicated Schools Grant gives £12
  • Business rates and Revenue Support Grant give £11
  • Rental income - the Council gets £  
  • Parking income gives £9
  • Fees and charges give £7
  • Other income gives £5
The diagram shows how the money for capital spending in the borough is split by themes for 2025-26. The total sum for capital spending is £85.846m. The biggest part goes to the housing sector, with £36.814m set aside for New Homes and £2.648m for Temporary Accommodation. Then, £12.115m is spent on Environment. £9.507m is spend on Schools. The council allocated £3.871m for Highways. £4.186m is allocated to other property, £3.455m to Information Technology, £484k to Early Years, £3.127m to Parks, £1.314m to C

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 £85,846m. This is divided as follows:

  • £36,814m for the housing sector - new homes
  • £2,648m for temporary accommodation
  • £9,507m is spent on schools
  • £4,186m is spend on other property
  • £3,455m is spent on information technology
  • £3,871m allocated for highways
  • £12,115m is spent on the environment
  • £484k for early years
  • £3,127m for Parks
  • £1,314m for Children’s Social Care
  • £7,132m for Adult Social Care
  • £1.193m for other capital spending
The diagram shows the expected funding sources for the council's general fund capital spending of £85.846m in 2025-26. Borrowing will provide £59.929m of the funds. Capital grants and contributions will supply £7.376m. Section 106 and community Infrastructure Levy contributions will make up £12.913m. Revenue contributions to Capital Outlay will contribute £5.628m.

How the Council's capital expenditure will be funded in 2025 to 2026

The ‘Capital funding’ diagram shows the expected funding sources for the Council's general fund capital spending of £85,846m in 2025 to 2026.

Borrowing will provide £59,929m of the funds. Capital grants and contributions will supply £7,376m. Section 106 and Community Infrastructure Levy contributions will make up £12,913m. Revenue contributions to capital outlay will contribute £5,628m. 

Looking beyond 2025 to 2026

The Council has set a balanced budget for the 2025 to 2026 financial year, however there are many challenges ahead. The forecasted budget gap is set to reach between £16m over the three years from 2026/27 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: 7 March 2025