Kensington and Chelsea is considering raising council tax by up to 70% in 2027-28, under options set out in a new budget report published today.
The report sets out three options for residents to be consulted on: maintaining the previously assumed annual rise of 5%, or introducing a much steeper increase of either 65% or 70% in 2027-28, followed by annual increases of 5% in subsequent years. Alongside the options, the borough is proposing around £65 million in savings.
The borough says the options stem from changes to government funding through the Fair Funding Review. Kensington and Chelsea’s funding would be cut by £108 million over four years — about the same as the borough spends on its children’s and adults’ services each year. The borough’s own breakdown puts the cut at £17.9 million in 2026 and 2027, with a further £91 million between 2027 and 2031.
Kensington and Chelsea has one of the lowest Band D rates in England, at £1,132.93 in 2026-27. That low starting point is central to the borough’s argument: even a large percentage rise would be applied to a comparatively small bill, though for residents on fixed incomes the cash increase would still be substantial.
Deputy leader and lead member for finance Emma Will said the prospect of a council tax increase of this level will be deeply worrying for residents.
The borough’s leader has joined the leaders of Westminster, Wandsworth and Richmond upon Thames in a challenge to the Fair Funding Review under the Sustainable Communities Act. The government has granted permission for certain boroughs to exceed the referendum limits for council tax for 2027-28 and 2028-29, which is what makes increases of this scale legally possible without a referendum.
The council is also proposing £19.1 million in one-off investment from reserves up to 2028-29.
Nothing is decided yet. The proposals will be discussed by council leaders on Wednesday 11 November, ahead of a public consultation due to launch the following Thursday. No final decision will be made until the budget is set at a full council meeting in March 2027.
For residents, the key dates are therefore the consultation launch and the March budget meeting — the 70% figure is currently an option for consultation, not an approved rise, and the final rate could land anywhere across the three options.
Related: Harrow to review hardship support for terminally ill residents
Related: Barnet older residents offered £200 winter energy grants and draught-proofing
