Published: Wednesday 14 October 2026
We are taking our fight against £108 million of Government funding cuts directly to ministers after our Leadership Team agreed to formally challenge the changes at its meeting on Tuesday 13 October.
The decision means we will submit a proposal to the Secretary of State under the Sustainable Communities Act 2007, calling on the Government to rethink its Fair Funding Review and consider alternative ways of funding local services.
The move follows a public consultation which received 1,499 responses, with 93 per cent supporting or strongly supporting our plans. Residents submitted more than 300 pages of comments, raising concerns about the impact the cuts could have on local services.
Why are we challenging the funding changes?
The Government's funding reforms will reduce our resources by £108 million between 2026/27 and 2029/30, equivalent to more than 40 per cent of our controllable budget.
We believe the Government's funding formula does not properly reflect the high cost of housing, population density or demand for services in Kensington and Chelsea. It also effectively penalises us for keeping council tax low.
The scale of the reductions would mean difficult decisions about local services at a time when demand for support is growing.
Councillor Elizabeth Campbell, Leader of Kensington and Chelsea Council, said:
“The Government calls this fair funding, but taking £108 million from our borough – more than 40 per cent of our controllable budget – is the furthest thing from fair. This is unfair funding, plain and simple, and an unprecedented reduction that will mean incredibly tough decisions and stark consequences for our residents.
“I have been clear from the beginning that I will exhaust every avenue to challenge this decision. As Leader, I could not stand in the Council Chamber and announce decisions affecting residents’ lives knowing there was more we could have done to persuade the Government to think again.
“And this is not just our fight – almost 1,500 residents responded to our consultation, providing more than 300 pages of comments about what these cuts would mean for them. I will be sending their words directly to ministers so they understand that it is not just the Council saying this is wrong, but the people we represent.”
What did residents tell us?
We consulted residents between 2 September and 4 October 2026, asking whether they supported using the Sustainable Communities Act to challenge the funding changes.
Almost 1,500 people responded, with 93 per cent backing our approach. Residents raised concerns about the impact of funding cuts on essential services, particularly those supporting vulnerable people.
Many also called for us to keep more of the money raised locally, including a greater share of business rates and other taxes. Others wanted councils to be given more time to adjust to the funding changes.
How are we challenging the cuts?
Following the Leadership Team's decision, we will submit a formal proposal to the Secretary of State using the Sustainable Communities Act 2007.
The Act allows councils to ask the Government to remove rules or barriers that prevent them from improving life in their communities.
We will use this process to challenge the impact of the funding reforms and put forward alternative ways of funding local services.
What happens next?
The Secretary of State must consider our proposal and decide whether to accept all or part of it, giving reasons for the decision.
Westminster, Richmond upon Thames and Wandsworth councils are also preparing proposals under the same legislation because they face similar funding reductions.
Although each council must submit its own proposal, we are working together to make a stronger case for change.