Draft Budget Proposals 2026-27

Overview

Help us tackle our biggest budget challenge yet by sharing your views on the Council’s budget for the financial year 2026/27.

The Council delivers around 200 services – from keeping our streets clean and maintaining open spaces to providing vital services such as adult and children’s social care and homeless prevention. Each year, we are legally required to set a balanced budget, ensuring that the money we spend does not exceed the income we receive from government grants, Council Tax, business rates, and charges for services we provide.

Between now and 2030, we expect to lose around £82 million in Government funding due to the Government’s Fair Funding Review, which proposes changes to the way each council’s grant funding is calculated in the future. On top of the funding we expect to lose from government, costs of delivering our services continues to go up from growing need and rising inflation. If the government’s position doesn’t change it will mean that we will need to find around £130 million in savings over the next four years.

This year’s budget has been developed to support the priorities set out in our Council Plan 2023–2027, creating a Greener, Safer, and Fairer borough for all residents. However, the national financial situation continues to place significant pressure on local government finances. We must therefore scrutinise all areas of spending and ensure the sustainability of our services, with a focus on protecting essential services, operating efficiently, and continuing to support our most vulnerable residents.

We are therefore seeking your views. Your feedback will help shape our financial priorities and ensure we continue to deliver value for money for residents, businesses, and communities across Kensington and Chelsea.

The proposals are split between the revenue and capital budgets. The revenue budget refers to day-to-day expenditure and income for the Council, such as service delivery and staff costs, whereas capital budgets refer to expenditure used to acquire or improve assets for the long-term functionality of the Council.

All savings and growth proposals have been assessed through an Equalities Impact Assessment, which considers the potential effects on residents and communities to ensure our approach remains fair and inclusive.

Why your views matter

The consultation will run from Thursday 13 November 2025 to Friday 9 January 2026, and we welcome responses from all residents, businesses, and community partners, your views will help inform the final budget decisions for 2026/27.

If you require this consultation in a different format or assistance in another language please contact budget@rbkc.gov.uk