Many councils across the country are expected to implement the maximum permitted increase of 4.99%, making Kensington and Chelsea’s increase notably lower.
Kensington and Chelsea Council has approved its budget for 2025/26, ensuring one of the lowest council tax increases in London while maintaining vital support for residents amid financial pressures.
Keeping Council Tax Low
Council tax will rise by 4%, comprising a 2% general increase and a 2% social care precept. This means an average Band D property (excluding Garden Squares) will see an increase from £1,037.58 to £1,079.08—an additional £41.50 annually, or less than £1 per week. Many councils across the country are expected to implement the maximum permitted increase of 4.99%, making Kensington and Chelsea’s increase notably lower.
Support for Low-Income Households
Despite budget constraints, the Council has balanced its finances while continuing to support around 15,000 low-income residents. This spring, eligible residents will receive a one-off £50 payment to help with the rising cost of living. Additionally, pensioners in social housing who narrowly missed out on the national winter fuel payment have been granted a £200 energy bill credit. Over 13,000 low-income households will also receive assistance with their council tax bills, and free school meals will be available for eligible pupils outside term time.
“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.”
-Elizabeth Campbell, Leader of the Council
Council Leader Cllr Elizabeth Campbell highlighted the importance of financial prudence and resident-focused investment: “While many councils are struggling financially, I am proud that we have set a balanced budget while keeping taxes low. We face the challenge of saving £40 million over the next four years, but by transforming our services, we are already saving £16 million this year. Our priority remains investing in what matters most to our communities—clean streets, improved homes, and high-quality public spaces.”
Major Investments in the Borough
Over the next three years, the Council will invest more than £500 million in housing, council estates, schools, highways, transport, public spaces, and parks. Next year alone, £677 million will be allocated to essential services such as weekly bin collections, environmental enforcement, green spaces, and street maintenance. The budget was formally approved at the Full Council meeting last week.
