Draft Budget Proposals 2027-28

Overview

We are seeking residents’ views on the Council’s budget proposals for 2027/28 and the financial challenges we face over the coming years.

The Council delivers around 200 services, from keeping streets clean and  maintaining parks and open spaces, to providing essential services such as adult social care, children's services and homelessness prevention.

Each year the Council by law must set a balanced budget before the start of the financial year. This means ensuring that planned spending on services is matched by the funding available from Council Tax, business rates, government grants, fees and charges, and other income sources. If spending exceeds income, the Council must either reduce costs, generate additional income or increase Council Tax in order to balance its budget.

The Government has recently carried out a Fair Funding Review, which will have a significant impact on the Council’s finances including a reduction in funding of £108 million over the period 2026/27-2029/30. Combined with rising costs and  increasing demand for services, this requires us to make difficult decisions about how services are delivered in the future.

Over recent years, the Council has taken significant action to improve efficiency and value for money. Since 2022, the Council has delivered over £50 million of savings, reduced staffing levels by almost 10 per cent and has been independently recognised as the country's most productive council. This has been achieved through better use of technology, reviewing management and support functions, improving procurement and contract management, and redesigning services to make them more efficient. As a result, the Council has been able to continue delivering high-quality services while keeping Council Tax comparatively low. However, the scale of the Government's proposed funding reductions means that efficiencies alone are no longer sufficient to address the financial challenge facing the borough.

The Council, supported by nearly 1500 residents, challenged the Government under the Sustainable Communities Act last month. This challenge is ongoing, and the budget proposals set out in this consultation reflect the funding changes  currently expected and the financial position as it stands today. The Act allows councils to ask Government to remove barriers that prevent them from improving the economic, social and environmental wellbeing of their communities. The Council has used this process to challenge elements of the local government funding system and seek a fairer funding settlement for the borough.

The Council’s budget proposals have been developed in line with the Council Plan, and we remain committed to delivering high-quality services and protecting the things you value most while making savings fairly.

That’s why it's important to hear from you. Please spare a few minutes to share your views about the choices we must make, how and where we spend the money, find savings and increase income to invest in services that our residents value the most.

The proposals are split between the revenue and capital budgets:

• Revenue budget refers to day-to-day expenditure and income for the Council, such as service delivery and staff costs
• Capital budgets refer to expenditure used to acquire or improve assets for the long-term functionality of the Council.

Savings and growth proposals are being 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 12 November 2026 to Wednesday 6 January 2027, and we welcome responses from all residents, businesses, and community partners. Your views will help inform the final budget decisions for 2027/28.

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