Surge in bills as Kensington & Chelsea plans major council tax rise

A planned rise in Kensington and Chelsea council tax is set to affect thousands of residents after the borough unveiled proposals to scale back discounts and lift standard bills. For many households the measures signal a marked change in how the council intends to raise income and deal with its growing budget gap.

The Royal Borough of Kensington and Chelsea (RBKC) is targeting an estimated £139 million deficit by 2029/30 and has flagged new charges for some of the poorest residents, while also proposing to double taxation for second-home owners. The council leader, Elizabeth Campbell, said: “We are facing cuts of £82 million because of the Government’s fair funding review. It is our biggest budget challenge yet and it means very tough decisions ahead.”

What’s changing

Under the draft budget:

• Up to 8,000 working-age households currently receiving full discounts could see them reduced by 10 %.
• General council tax bills are expected to rise by 5 % in April 2026.
• Owners of second homes may face a premium similar to those introduced in boroughs such as Wandsworth and Westminster.
• The council cites central-government cuts to settlement funding as the primary driver of the shortfall.

Why this matters

London boroughs are under mounting pressure, with an estimated funding gap of £4 billion across the capital’s local authorities. The Institute for Fiscal Studies warns that inner London councils such as Kensington & Chelsea could see real-terms funding cuts of more than 10 % even with annual tax rises factored in.

Local residents express concern. One pensioner in the borough remarked: “We’ve been told for years we were exempt, but now it looks as if even we might be paying.”

What’s next

The council says it will begin a public consultation on 13 November, inviting residents to have a say on the final proposals. Leader Elizabeth Campbell added: “It is inevitable that services will have to change and taxes will rise, but exactly how and by how much is still on the table.”

With services and support schemes under threat, the borough is preparing for difficult decisions amid funding pressures and growing demand on housing and social care.

For more independent coverage of local politics and council finances in the borough of Kensington & Chelsea, follow EyeOnLondon Kensington & Chelsea – we’d love to hear your views in the comments.

[Image Credit | London Perfect]

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