More than 970 people have taken part in recent consultations on the budget and Council Tax Reduction Scheme run by the Royal Borough of Kensington and Chelsea, representing a significant rise in public engagement.
In total, 979 responses were received across the two consultations, an increase of 841 per cent compared with last year. The consultations have now closed, and the feedback is being used to inform a series of difficult financial decisions as the council seeks to address a substantial budget gap.
On Tuesday 13 January, the council’s leadership team recommended a change to the Council Tax Reduction Scheme to save £441,000. Subject to approval by Full Council in February, working-age residents who currently receive 100 per cent Council Tax relief would instead receive 90 per cent relief, meaning they would pay 10 per cent of their bill. Pensioners would not be affected by the change, as they remain covered by the national scheme.
The consultation also asked for views on a larger, 20 per cent reduction in support, but the leadership team decided not to pursue this option, citing concerns about placing a greater tax burden on residents.
This proposed change to the Council Tax Reduction Scheme is the first of several measures being considered to help close the budget gap. The budget consultation also sought views on introducing a second homes premium and increasing Council Tax by five per cent. Decisions on these proposals, alongside the wider budget package, are due to be made by the leadership team on 11 February, with Full Council taking the final decision on 25 February 2026.
The consultations took place against the backdrop of the Government’s Fair Funding Review, which has had a particularly severe impact on the Royal Borough of Kensington and Chelsea. Funding settlements announced on Wednesday 17 December 2025 indicate that the council is expected to lose more than £108 million over the next four years. This is significantly worse than the previously anticipated reduction of around £82 million and increases the pressure on the council to consider tax rises and changes to services.
The budget consultation closed on Friday 9 January 2026 and received 433 responses. Early findings show that 84 per cent of respondents said they understood why the council needs to reduce services, make savings and increase fees or taxes. Support for a five per cent increase in Council Tax stood at 48 per cent, while 60 per cent of respondents supported the introduction of a second homes premium. A full report on the consultation findings will be published in February.
The Council Tax Reduction Scheme consultation received 546 responses, including 375 from residents currently receiving support. The results show that 62 per cent of respondents disagreed, to some extent, with changing the scheme, while 28 per cent agreed, to some extent, that it is fair for all working-age residents to pay some level of Council Tax. The feedback will continue to inform discussions ahead of final budget decisions later in February 2026.
