Kensington and Chelsea set a balanced and fair budget with low tax and support for residents

Published: Thursday 6 March 2025

Kensington and Chelsea Council has approved its final budget for 2025/26, keeping taxes low for households in the borough.

Square tiles showing low council tax

Keeping council tax low

Council tax will go up by four per cent, one of the lowest announced increases in London. This is made up of two per cent for council tax and two per cent for the social care precept. An average Band D property (excluding Garden Squares) will see an increase from £1,037.58 to £1,079.08, an increase of £41.50 from last year. This increase is less than one pound a week and one per cent less than the maximum of 4.99 per cent with the majority of councils around the country expected to raise their council tax to the maximum.

Supporting low-income residents

Despite budget pressures within local government, the Council has managed to set a balanced budget and is offering support to around 15,000 residents on low incomes with a one-off £50 support payment in spring this year to help with the rising cost-of-living. Pensioners in social housing who narrowly missed out on the national winter fuel payment have received a £200 credit from the Council to help with their energy bills. Kensington and Chelsea families will also benefit from free school meals for eligible pupils outside term time and help for over 13,000 low-income residents with their council tax bills.

Diagram illustrates £50 payment for low-income households

Cllr Elizabeth Campbell, Leader of Kensington and Chelsea Council said:  

"Whilst many councils are on the verge of bankruptcy, I am very proud that we have set a balanced budget and kept taxes low for our residents. Times are tough for local government, and we are no exception with £40 million to save over the next four years. By transforming our services, we are saving £16 million this coming year. Meanwhile we are focusing investment in what really matters to our communities - keeping our streets clean, improving our homes, and creating more amazing public spaces." 

Investment over the next three years

The Council plans to invest over £500 million in the borough’s housing needs, council housing estates, schools, highways, transport, public spaces and parks over the next three years. A further £677 million will be spent next year on the day-to-day running of local services including weekly bin collections, enforcement, green spaces and keeping streets clean.   

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

Kensington and Chelsea Council’s Leadership Team approved the budget at Full Council meeting on Wednesday 5 March 2025. The budget and Council tax plans for 2025/26  are available to view on the Council’s website.