Published: Thursday 13 November 2025
Every year the Council has to set a balance budget. This sets out how we will fund the 200 services we provide, from keeping our streets clean to providing children’s social care.
Next year this is going to be a bigger challenge than ever before, due to changes in how the Government is allocating money to councils.
This Council has a very strong record on sound financial management, but to continue to provide high-quality services, we need to ensure we make every pound count.
Residents can give their views on next year’s budget proposals now in a consultation open until Friday 9 January 2026.
The Fair Funding Review
The Government’s Fair Funding Review is proposing to change the way it works out how much grant funding the Council will get in the future. It means things like the cost of housing in London, and the increase in our daytime population, are not accounted for. If it goes ahead, Kensington and Chelsea is expected to lose an estimated £82 million in funding from the Government.
Finding savings
The loss of Government grant, coupled with the rising costs of delivering council services, means that we need to find over £130 million in savings over the next four years.
We have already made a start on this by transforming how we work. Next year, we will save £22 million by finding savings through a staff voluntary redundancy scheme, making better use of buildings we own for services and finding opportunities to generate additional income through advertising.
But there is much more to do to close the funding gap and we need residents to give their views so we can prioritise what matters most to them.
We will continue to invest in social services, housing and street cleaning.
Proposals for Council tax
Alongside savings, the Council is looking at how it can raise income to maintain essential services. This includes proposals for Council Tax. Here are the main things in the draft budget:
- raising Council Tax by five per cent each year
- reviewing changes to the Council Tax Reduction Scheme
- considering introducing a Council Tax premium on second homes.
How to have your say
Give your views now in a short online survey. The consultation will close at 11.59pm on Friday 9 January 2026.
We are also consulting separately on changes to the Council Tax Reduction Scheme, until Sunday 7 December 2025.