The Leadership Team of Kensington and Chelsea Council met on Wednesday, 25 March 2026, to discuss a range of important issues, including the council's financial performance, housing management, and essential infrastructure repairs. Key decisions were made regarding the council's budget, the awarding of contracts for care services, and the relocation of a day centre.

Financial Monitoring and Budget Decisions

The council's financial position for the third quarter of the 2025/26 financial year was presented, indicating a forecast nil variance on the General Fund revenue budget of £219.165 million. Despite the significant impact of a cyber-attack in November 2025, which affected various council operations and income collection, officers are working to manage pressures and mitigate risks. The report highlighted pressures in Housing Needs and Children's Services, largely due to increased demand for temporary accommodation and high-cost placements, offset by underspends in Environment and Neighbourhoods, particularly in Parking Services. The council also noted the ongoing impact of the cyber-attack on income collection and the need for reserves to fund recovery and modernisation efforts.

The Leadership Team was asked to approve the use of corporate contingency funding for several items, including £365,000 for Adult Social Care to address pressures arising from the collapse of a contracted supplier. They also agreed to rephase capital budgets due to programme slippage, adding new funding for schemes such as Schools Carbon Zero and Gloucester Road North Streetscape. The Housing Revenue Account (HRA) is forecasting a balanced position, with a £27,000 transfer to the capital programme. However, the HRA Capital Programme is forecasting an underspend of £7.808 million due to slippage on several major projects, including Barlby Road (New Homes Delivery) and Kensington Town Hall LED Lighting.

Significant savings targets for 2025/26 were reviewed, with 84% identified as achievable. However, £2.417 million in savings are currently deemed unachievable this financial year, with some of these being delayed to future years or held centrally pending further development. The council's reserves remain prudent, with a forecast closing balance of £94.831 million for the General Fund.

Housing and Care Services

The council approved the award of contracts for the provision of Housing Care and Support Services for adults with learning disabilities. These contracts, valued at up to £28.898 million (excluding VAT) over five years with options to extend up to ten years, will ensure the delivery of high-quality, person-centred care aligned with statutory duties under the Care Act 2014. Four providers were selected based on their high-quality scores and demonstrated commitment to personalised support and safeguarding.

The report also provided an update on Housing Management performance for Q3 2025/2026. While core safety compliance for electrical, gas, and fire safety remained high, the cyber-attack had a notable impact on repairs, complaints handling, and rent collection data. The average time to complete responsive repairs showed a year-on-year improvement, but door entry repairs were affected by system outages. Estate services reported satisfaction rates above target for cleaning, though grounds maintenance was slightly below target. A significant backlog of complaints has developed due to the cyber incident, and efforts are underway to manage this. Rent arrears data was unavailable due to the cyber-attack.

Infrastructure and Community Services

Essential repairs to Albert Bridge were approved, with an estimated cost of £8.5 million. The bridge had been closed to motor vehicles since 6 February 2026 due to discovered damage. The decision includes carrying out essential repairs and adding strongly recommended betterment works, such as replacing the road surface with more durable asphalt-composite panels and upgrading the lighting to LED. The council is seeking financial contributions from Transport for London and the Department for Transport for these works, acknowledging that securing this funding may take time.

The council also discussed the proposed relocation of St Mark's Day Centre for residents with learning disabilities. The current building at 1-9 St Mark's Road was deemed unfit for purpose. While an initial plan to relocate to Maxilla Walk was found unsuitable due to Transport for London's maintenance requirements, Unit 12 Latimer Road has been identified as the recommended alternative site. This decision is subject to ongoing stakeholder consultation and an equalities impact assessment.

Resident Engagement and Business Support

The findings of the 2025 Residents Survey were reviewed, highlighting areas of strength and areas for improvement. The survey, which engaged nearly 2,000 residents, indicated high satisfaction with the local area, waste collection, parks, and feeling safe during the day. However, areas such as change since the Grenfell tragedy, influencing local decisions, and improvements to the local area showed lower positive response rates. The survey also revealed variations in resident experiences across different demographics and geographies, prompting an endorsement of an action plan to address these insights. A proposal to conduct a residents' survey again in 2026 was supported to inform the development of the next Council Plan.

The council agreed to adopt the Government's Supporting Small Business Relief (SSBR) scheme for 2026/27 to 2028/29 without variation. This scheme aims to cap bill increases for eligible businesses losing certain reliefs following the 2026 revaluation. The council will also continue the 2023 SSBR scheme for financial year 2026/27. The estimated cost of the 2026/27 scheme is £18.89 million, which the government has committed to fully reimburse.

Other Matters

The council also noted the Q3 Housing Management Performance report, which detailed performance metrics across various areas of service delivery. While safety compliance remained high, the cyber-attack had a significant impact on data availability and operational processes. The report highlighted the ongoing efforts to manage repairs, estate services, and address complaints and contact centre backlogs.

The council reviewed the Q3 Financial Monitoring Report for the General Fund Revenue Budget, noting a forecast nil variance despite the cyber-attack. The report detailed pressures in Housing Needs and Children's Services, offset by underspends in Environment and Neighbourhoods and favourable treasury management. The council also noted the progress of its savings and transformation programme, with 84% of savings identified as achievable.

Finally, the council reviewed the Q3 Housing Revenue Account (HRA) Revenue Budget, which is forecasting a balanced position with a £27,000 transfer to the capital programme. The HRA Capital Programme is forecasting an underspend of £7.808 million due to slippage on several major projects.