The Royal Borough may be among Britain’s richest, but the Council is staring down a massive £82 million funding shortfall and families have been warned to brace for rising bills and shrinking services.

Shell-shocked Town Hall bosses admit they are heading into their worst budget crisis in decades, as Government support is set to nosedive between 2026 and 2030. Next year alone, RBKC expects to be £23.5 million down.

The message to residents couldn’t be clearer: pay more — or get less. 

“I cannot sugarcoat the financial situation we are facing,” said Council Leader Elizabeth Campbell, in a stark warning that has left families fearing what comes next.

To plug the gap, RBKC is lining up a series of swingeing austerity measures.

Top of the list is a 5% council tax rise every year for the next four years — the biggest increase allowed without forcing a local referendum.

And the Borough’s 8,000 second-home owners — the highest number in London — are in the firing line, facing a 100% premium that would double bills, meaning an average Band D property would be hit with up £3,184 a year.

Other controversial plans to find £130 million in savings include:

* Charging £31.77 a week to people who pay for their own care but ask the council to arrange it.

* New fees for vulnerable residents whose state benefits are managed by RBKC.

* Cutting the Council Tax Reduction Scheme for low-income households by 10% or 20% — a move that could hit thousands of struggling families.

Behind the scenes, the council is preparing to slash staffing costs, squeeze more cash from council-owned buildings, and push up fees and charges across a range of services.

Council Leader Elizabeth Campbell has repeatedly warned that the Government’s new funding formula hits inner-London boroughs hardest — failing to recognise the sky-high housing costs and huge daytime population pressures in places like Kensington and Chelsea.

And locals in Chelsea told The Chelsea Citizen they feel the Government’s punishing them simply for living in a wealthy-looking postcode.

Mum-of-four Georgia Mason, from the World’s End Estate, said:

“We’re already struggling. I’m paying £130 a month in council tax — we’re not rich, and any rise would be awful.”

Eighty-five-year-old Robert Newsum agreed: “People don’t realise there’s real poverty in Chelsea. We’re not all wealthy. If I were 20 years younger, I’d leave the country.”

RBKC’s web page titled “Help us meet our biggest challenge ever” has now launched the plans into public consultation — although its web page has come under fire.

The influential Kensington Society has blasted the main budget  survey as “badly put together,” with chair Amanda Frame warning the online survey is riddled with broken tick-boxes and unreadable tables.

“Some of the questions are difficult to answer without a detailed knowledge of Council arrangements,” she said. “However, it is an important document, and we do encourage everybody to look at it, even if you cannot answer all the questions.”

Reacting to criticism a Council spokesperson said:”Consultation documents are sometimes difficult to negotiate, but we’ve not heard of responders reporting problems like broken links.

“We’ve had a good response—160 so far, infact already 3 times bigger than our last consultation.

We also had a Citizens Panel event last Wednesday which was attended by 97 residents” 

 

KEY CONSULTATIONS

 

* Draft Budget Proposals 2026-27: The deadline for comment is 9 January 2026, and the paper can be found at:https://consult.rbkc.gov.uk/resources/budget-2026-27/ 

* Future support for the voluntary and community sector: The deadline is 7 December 2025, and the paper is to be found at: https://consult.rbkc.gov.uk/grenfell-partnerships/vcs-support/ 

* Adult Social Care – Self-funders fee: The deadline is 9 January 2026 and the paper is to be found at:

https://consult.rbkc.gov.uk/adults-social-care-and-health/self-funders/ 

* Adult Social Care – Client Affairs charges:  The deadline is 9 January 2026, and the paper is to be found at: https://consult.rbkc.gov.uk/adults-social-care-and-health/client-affairs/ 

* Council Tax Reduction Scheme 2026-27:  The deadline is 7 December 2025, and the paper can be found at: https://consult.rbkc.gov.uk/resources/council-tax-reduction-scheme/