Second homes premium and council tax rise agree by RBKC
Kensington & Chelsea councillors have agreed to raise council tax by 4.99% and introduce a 100% premium on second homes. The “touch choices,” the council says, were made “due to government funding cuts.” Both measures will go to Full Council on 25th February 2026 for a final approval as part of the overall budget setting for 2026/27.
Local government settlements were announced back in December, leaving the borough facing £108 million in cut. Six councils, five of which are in London, have been negatively impacted by the government’s new Fair Funding Review, Kensington & Chelsea says. The decisions, including on council tax, it said, “are some of the measures taken to help close the gap.”
In its budget proposals for the next year, Kensington & Chelsea says it will spend on the day to day running of its services. These include twice weekly bin collections, enforcement, and its parks. It will invest in the borough’s housing needs, schools and early years provision, highways, transport, and open spaces, it added.
More than £21 million in savings through a staff voluntary redundancy scheme has already been proposed, as well as “making better use of its buildings and finding opportunities to generate income through advertising.”
More than 400 residents responded in Kensington & Chelsea’s budget proposals. 84% of respondents understood why the Council was having to look at a reduction in services, making savings, and increasing taxes and fees. 48% supported a 5% increase in council tax, and 60% supported the second homes premium.
A separate consultation on the Council Tax Reduction Scheme saw 546 respondents. On 28th January 2026 at Full Council, Councillors agreed to reduce Council Tax support by 10%, meaning that people who currently receive 100% relief on their bill will now receive 90% relief, affecting around 5,000 people.
For more updates on Kensington & Chelsea, visit EyeOnLondon Kensington & Chelsea.
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