Council tax to increase by 1.99 per cent in Kensington and Chelsea

By Hannah Neary, Local Democracy Reporter

Council tax is set to increase by 1.99 per cent in Kensington and Chelsea from April.

People living in Band D properties will need to pay £968.88 a year – an increase of £18.94 from last year.

The Tory-led council plans to invest £297 million in capital projects, including housing, roads and pavements, environment, and schools.

The authority’s full budget is £631m, with £433m spent on services.

This includes a £233m investment in homes, roads, the environment, open spaces, schools, and childcare.

The council plans to make £7.5 million cuts to balance its books.

Spending on temporary accommodation will be slashed by £900,000, support for elderly people living independently will be cut by £500,000 and £450,000 worth of savings will be made to adult social care.

The increase of 1.99 per cent is made up of a 0.99 per cent increase in council tax and a one per cent increase in what is called the adult social care precept – an extra charge for social care recommended by central government to meet increased demand.

The council’s Labour group called for the 0.99 per cent to be scrapped and instead for the authority raise council tax by three per cent for “wealthy residents” or a one-off payment to people on receiving council tax reduction payments.

The group also objected to the council’s cut of £900,000 to temporary accommodation funding.

A report by the Labour group said: “We recognise the effects of the Covid-19 pandemic and the 11 years of government austerity policies had already reduced the incomes of in-work household in the borough and created serious financial problems that often resulted in mounting debt for less affluent low-paid households.

“One in four borough children are living in poverty as a result and most of them are from North Kensington.

“Residents and families relying on ever-decreasing social security support and the unstable universal credit system were also adversely affected – and still are – as are the jobless, people experiencing in-work poverty, the elderly and those with disabilities relying on state support.”

The council’s lead member for finance Mary Weale said: “I am pleased we have managed to set a prudent and balanced budget for 2022/23 whilst keeping our council tax rates comparatively low.

“Our residents and businesses have told us what they value the most about living and working in the borough in our council plan and this has helped us to focus our spending on their priorities.

“We appreciate that many households are experiencing a lot of hardship due to the rising costs of living. We hope that a below-inflation increase in council tax will help to alleviate some of the effects of this.”

Kensington and Chelsea confirmed the new council tax rates during a meeting on Wednesday, March 2 with 27 votes for, 10 against, and one abstention. 

Pictured top: Kensington Town Hall (image: Hannah Neary)