Council budget for RBKC presenting challenges

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November 25, 2025
3 min read

Council budget for RBKC presenting challenges

Kensington & Chelsea Council says it is facing a “bigger challenge than ever before” over its council budget. This is due to “changes in how the Government is allocating money to councils.” The council says it “has a very strong record on sound financial management,” but to continue to provide “high-quality services,” it needs to ensure it makes “every pound count.”

Residents can give their views on next year’s proposals now in a consultation that is open until Friday, 9^th January 2026.

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The Government’s Fair Funding Review proposes the way it calculates how much funding it grants councils in the future. This would mean that “things like the cost of housing in London, and the increase in our daytime population, are not accounted for,” Kensington & Chelsea Council says. The borough stands to lose an estimated £82 million in funding, it warns.

The loss of government grant, combined with an increase in the cost of council services means that it would have to find over £130 million in savings for its council budget over the next four years, it said.

“We have already made a start on this by transforming how we work,” according to a council press release. “Next year, we will save £22 million by finding savings through a staff voluntary redundancy scheme, making better use of buildings we own for services and finding opportunities to generate additional income through advertising.”

Ther is “much more to do to close the funding gap,” it added, and is asking for residents to give their views to allow it to “prioritise what matters most to them.” Social services, housing, and street cleaning will continue to be invested in.

Alongside savings, the Council is considering other way to maintain its essential services, including changes to the Council Tax. Here are the main things in the draft council budget: