Published: Thursday 12 November 2026
We have launched a public consultation on our draft budget for 2027/28, asking residents to have their say on difficult choices facing Kensington and Chelsea, including a potential council tax increase of up to 70 per cent.
We face a funding shortfall of more than £120 million over the next few years, largely due to changes to how the Government distributes funding to councils. We expect to lose £108 million as a result of the Government’s Fair Funding Review, while rising costs and growing demand for essential services are adding to the financial pressure.
We have a strong track record of managing public money carefully and keeping council tax low, but the scale of the challenge means we must now make some tough decisions. Our proposals include over £65 million in savings, reviewing fees and charges, and increasing council tax by up to 70 per cent from April 2027. We want residents to help shape these decisions before we agree our budget.
Cllr Emma Will, Lead Member for Finance and Deputy Leader at Kensington and Chelsea Council, said:
“I know the prospect of a council tax increase of up to 70 per cent will be deeply worrying for residents. This is not a proposal I ever wanted to bring forward, but the Government’s funding review has left us facing an almost impossible financial challenge.
“We have spent years keeping council tax low and managing public money carefully. Now, instead of being rewarded for that record, we are effectively being punished for it. Even after finding more than £50 million in savings, with over £65 million more to come, we must act now or face even tougher choices in the future.
“I will not pretend these are easy decisions. We will listen carefully to residents before deciding what happens next, and my priority remains protecting the services that matter most, making every penny count and continuing to fight for a fairer deal from Government. Our residents deserve nothing less.”
How Government funding changes affect us
The Government's Fair Funding Review is changing how funding is distributed between councils across England.
Under the changes, we expect to lose £108 million over the next few years. That’s over 40 per cent of our budget which we can directly spend on essential services that our residents expect to be delivered.
We have over £120 million less than we need and must find ways to reduce spending, raise additional income and make every pound go further.
What are we proposing?
Our draft budget sets out a range of measures to address the funding shortfall while continuing to provide essential services.
The main proposals include:
- Identifying over £65 million in savings over the coming years
- Increasing council tax by up to 70 per cent from April 2027
- Reviewing the fees and charges we set for services in 2027/28.
Protecting services and investing in priorities
Despite the financial pressures, we remain committed to protecting essential services and supporting our most vulnerable residents.
Our plans include making nearly £25 million in savings next year, while continuing to invest where we can in the things that matter most to residents. This includes maintaining clean, attractive streets, supporting vulnerable residents and delivering the essential services our communities depend on.
Have your say
We want residents to help shape our budget and understand the difficult choices we face.
You can find out more about our proposals and share your views by completing our short online survey here.
The consultation closes at 11.59pm on Wednesday 6 January 2027.