The Leadership Team of Kensington and Chelsea Council met on Tuesday 13 October 2026 to discuss the adoption of a new Council Plan for 2026-2030, address significant financial challenges, and review the Council's Asset Strategy. The team also considered grant awards from the Voluntary Sector Support Fund.

Adoption of the New Council Plan 2026-2030

The Council's new Council Plan for 2026-2030 was presented as a draft. The plan outlines the vision and priorities for the borough over the next four years, built upon manifesto commitments and consultation feedback. The four key priorities are: Clean streets and amazing spaces, Getting the basics right, Making your life easier, and Value for money. The plan acknowledges significant financial challenges, including an expected funding gap of over £120 million, necessitating a focused approach to resource allocation. A key element is the commitment to co-design a Resident Pact with residents and community partners to clarify the relationship between the Council and its residents. The Leadership Team delegated authority to the Chief Executive, in consultation with the Leader, to make minor amendments to the draft before its final exhibition.

Addressing the Fairer Funding Formula and Financial Challenges

A significant portion of the meeting was dedicated to discussing the impact of the Government's Fairer Funding formula, which is projected to reduce the Council's resources by £108 million over four years. Councillor Elizabeth Campbell, Leader of the Council, expressed strong opposition to this funding settlement, describing it as unfair and unreasonable. The Council is utilising the Sustainable Communities Act 2007 to formally request the Government to provide alternative funding solutions. This proposal was supported by a public consultation, which received 1,499 responses, with 93% in favour of the Council challenging the funding arrangements. Residents prioritised retaining a greater share of locally generated income, such as business rates, and having more time to adapt to funding changes. The Council is also exploring other revenue streams, including a potential tourist tax, to mitigate the financial impact.

Council Asset Strategy 2026-2030

The Leadership Team reviewed the Council Asset Strategy for 2026-2030. This strategy outlines an approach and direction of travel to optimise the use of the Council's land and buildings to support service delivery, financial sustainability, and income generation. It acknowledges the significant funding gap and residents' preference for efficient use of buildings over service reductions. The strategy proposes a move towards a smaller, more efficient, and better-utilised estate, with Kensington Town Hall and Pembroke Road identified as key hubs. It is guided by principles of protecting vital services, maintaining trust and transparency, aligning with service transformation, consolidating assets for savings, and prioritising the Council's own operational estate for rationalisation. Specific workstreams include operational estate rationalisation, specialist accommodation for Adult Social Care, commercial property management, the development of a locality model for community assets, housing, and Children's Services. The strategy reaffirms the Council's commitments stemming from the Grenfell Tower tragedy, emphasising resident-first decision-making and community involvement. No final decisions on specific buildings were made; these will be subject to further consultation.

Voluntary Sector Support Fund (VSSF) Grant Awards

The Leadership Team considered recommendations for grant awards from the Voluntary Sector Support Fund (VSSF) for the period 2027 to 2030. Despite a reduced budget due to the Council's financial challenges, the Council remains committed to supporting the voluntary and community sector (VCS). The VSSF programme, now in its third round, was intended to provide core funding over three years to selected organisations. The approach focuses on awarding larger grants to fewer organisations to foster strategic partnerships and provide greater stability. The grants aim to strengthen organisations that deliver vital services to vulnerable residents, improve health and life outcomes, and support preventative measures. A separate Small Grants Fund, managed by the Kensington and Chelsea Foundation, will continue to support smaller VCS organisations. Concerns were raised regarding the equality impact assessment and the reporting of data on social housing residents. The team agreed to the recommendations presented.

Other Discussions

The meeting included the confirmation of the minutes from the previous meeting held on 23 September 2026. There were no declarations of interest made by members of the Leadership Team.