Published: Thursday 26 February 2026
Kensington and Chelsea Council approved its budget for 2026/27 with savings and council tax measures following a meeting at Full Council on Wednesday 25 February 2026.
Government’s funding cuts
Kensington and Chelsea is facing £108 million in funding cuts over four years due to the Government’s new Fair Funding Review. Six councils, including five in London, have been negatively impacted by the changes that were announced in December 2025. The tax decisions are some of the measures taken to help close the budget gap.
What's in our budget for 2026/27
- Council tax will increase by 4.99 per cent
- A 100 per cent premium on second homes
- A 10 per cent reduction in council tax support
Savings measures
The Council is already making over £21 million in savings through a staff voluntary redundancy scheme, making better use of its buildings and finding opportunities to generate income through advertising.
Cllr Elizabeth Campbell, leader of Kensington and Chelsea Council, said:
“This is one of the most challenging budgets we have ever had to set, with over £21 million in savings through careful planning and efficiency measures.
“The Government’s so-called Fair Funding Review is anything but fair and expects councils like ours to do more with less money as we face £108 million cuts in funding over four years.
“Despite funding pressures, this budget demonstrates our ambition, resilience and commitment to deliver high standards of service for our residents.”
Investing in our borough
The Council will spend on the day to day running of local services including twice weekly bin collections and enforcement. We have invested £700,000 towards cleaner streets, £4.4 million to improve Portobello Road and £8 million into parks and green spaces.
Over 400 responses in our budget consultation
- 84 per cent of respondents said they understood why the Council was having to look at reducing services, make savings and increase fees/taxes
- 48 per cent supported a 5 per cent increase in council tax
- 60 per cent supported a second homes premium.
A separate consultation on the Council tax Reduction Scheme received 546 responses and ran from 27 October 2025 to 7 December 2025. On 28 January 2026 at Full Council, Councillors agreed to reduce Council Tax support by 10 per cent. This means people currently receiving 100 per cent relief on their bill will now receive 90 per cent relief.
Full details on budget and council tax for 2026/27 will be published soon on the Council's website.