Kensington and Chelsea Council has set out options to raise council tax by up to 70% from April 2027, alongside £65m of proposed savings, in a budget report published today.
The options follow an expected £108m cut in Government funding under the Fair Funding Review. The report says annual 5% rises would leave a £90.1m funding gap, while increases of 65% to 70% in 2027/28 would substantially close or eliminate it and allow reserves to be rebuilt.
Households eligible for the Council Tax Reduction Scheme will keep the same percentage discount, so their financial support would rise with any increase, according to the council.
Cllr Emma Will, Lead Member for Finance and Deputy Leader, said: ‘I know the prospect of a council tax increase of up to 70% will be deeply worrying for residents. This is not a proposal I ever wanted to bring forward, but the Government’s unfair funding review has left us facing an almost impossible financial challenge.’
The council’s Leadership Team will discuss the proposals on Wednesday 11 November, ahead of a public consultation launching on Thursday 12 November. Final decisions will be made at Full Council in March 2027.
Wandsworth and Hammersmith and Fulham councils have also warned of council tax rises of up to 160% and 150% respectively.
