Published: Wednesday 11 February 2026
Council tax increases and saving measures have been agreed by Kensington and Chelsea’s Leadership team. Councillors agreed to record programme of savings measures, including a staff voluntary redundancy scheme. This is alongside increasing Council Tax by 4.99 per cent and introducing a 100 per cent premium on second homes. All measures will now go to Full Council on 25 February 2026 for final approval as part of the overall budget setting for 2026/27.
Impact of Government’s Fair Funding Review
Local government settlements were announced in December, leaving Kensington and Chelsea facing £108 million in cuts. Six councils, including five in London, have been negatively impacted by the Government’s new Fair Funding Review. The tax decisions are some of the measures taken to help close the budget gap.
Budget proposals for 2026/27
In its budget proposals for next year, the Council will spend on the day to day running of local services including twice weekly bin collections, enforcement, and award-winning parks. It will invest in the borough’s housing needs, schools and early years provision; highways, transport and open spaces.
Savings
The Council is already proposing 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.
Budget consultation
Over 400 residents responded in our budget proposals and here is what they said in the 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
Council Tax Reduction Scheme
A separate consultation on the Council Tax Reduction Scheme received 546 responses. 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. Around 5,000 working age people currently paying nothing will pay 10 per cent of their bill for the first time.