The Full Council meeting of Kensington and Chelsea Council on Wednesday, 25 February 2026, focused heavily on the approval of the council's budget and Council Tax for the 2026/27 financial year. Key decisions included the setting of the Council Tax requirement at £123.136 million and a Band D Council Tax of £1,132.93, alongside the approval of the Housing Revenue Account Budget and Business Plan for 2026/27 and the Treasury Management Strategy Statement for the same year.

Revenue Budget, Capital Programme and Council Tax 2026/27

The council approved its revenue budget and Council Tax for the 2026/27 financial year. The Council Tax requirement was set at £123.136 million, resulting in a Band D Council Tax of £1,132.93, excluding Garden Square special expenses. This decision was made despite a mixed response during public consultation, with 48% supporting the proposed increase and 33% opposing it. The council also resolved to apply a 100% premium for second homes from April 2026. The budget includes provisions for inflation, service demand, and other pressures, amounting to £9.7 million for temporary accommodation, £2.5 million for social care, and £2.2 million for other demand pressures. Savings proposals totalling £21.1 million for 2026/27 were also approved. The council noted a significant medium-term financial position with an estimated budget gap of around £101 million for the period 2027/28 to 2029/30. The Capital Programme for 2025/26 to 2028/29 was also approved, totalling £186.2 million for the General Fund.

Housing Revenue Account Budget Setting and Business Plan 2026/27

The council approved the proposed 5-year Housing Revenue Account (HRA) Operating Account and reserve movement projections, along with the five-year HRA Capital Programme (2026/27-2030/31). The 30-Year HRA Business Plan's key assumptions, inherent risks, and uncertainties were also approved. A significant aspect of the HRA budget is the proposed rent increase of 4.8% (CPI + 1%), with the potential for an additional monetary value increase per week pending the outcome of the government's consultation on rent convergence. This increase is deemed necessary to sustain the required level of investment in council homes. Service charges are proposed to increase by 3.8%, reflecting estimated cost increases. The council also noted the significant investment required for the capital programme, exceeding available resources, and the reliance on borrowing to close this gap.

Treasury Management Strategy Statement 2026/27

The council adopted the Treasury Management Policy Statement and approved the annual Treasury Management Strategy Statement, incorporating the Annual Investment Strategy for 2026/27. This includes the proposed Prudential Indicators, which set maximum limits on treasury management activities, the Minimum Revenue Provision (MRP) Policy, and the use of specified and non-specified investments. The strategy aims to manage the council's cash flows, borrowing, and investments prudently, with a focus on security and liquidity, while seeking optimal performance. The council will continue to monitor interest rate forecasts and creditworthiness of institutions, with a commitment to maintaining a robust treasury management function.

Motions for Main Debate

Several motions were debated and voted upon:

• Future enhancements to the Street Scene: This motion, moved by Councillor Hamish Adourin and seconded by Councillor Janet Evans, was declared carried after debate. It welcomed the Amazing Spaces programme and called for continued funding for street scene enhancements in Earl's Court, urging accountability for Transport for London's responsibilities and failings.
• Establishment of a Grenfell Scholarship: This motion, moved by Councillor Kasim Ali and seconded by Councillor Marwan Elnaghi, was deferred to the next meeting by the Mayor. The motion called for the establishment of a scholarship to support local young people, particularly those affected by the Grenfell Tower tragedy.
• Changes to the Integrated Care Board: Moved by Councillor Lucy Knight and seconded by Councillor Anne Cyron, this motion was also deferred to the next meeting. It called on MPs to urge the government to review the NHS and local government funding formula, reminded the NHS that local authorities are legally barred from providing primary care services without adequate funding, and called for the re-establishment of an independent scrutiny body.
• Waiver of Council Tax for Residents with a Terminal Illness Prognosis of 12 Months or Less: Moved by Cllr Mohammed Bakhtiar and seconded by Cllr Portia Thaxter, this motion was deferred to the next meeting. It proposed a full waiver of council tax for residents with a terminal illness prognosis of 12 months or less.
• Better management and enforcement of e-bike parking: Moved by Councillor Joanna Gardner and seconded by Councillor Greg Hammond, this motion was deferred to the next meeting. It called for a review of the council's enforcement policy on e-bikes, requesting powers to regulate the market and for the Mayor of London to withdraw the Holland Park roundabout bike lane plan.
• To Adopt The Principle of Do No Harm: Moved by Councillor Claire Simmons and seconded by Councillor Sina Lari, this motion was deferred to the next meeting. It called for the formal adoption of the Do No Harm principle across all council activities, policies, and decisions, including training and constitutional amendments.

Other Matters

The council also confirmed the minutes of the previous meeting held on 28 January 2026 and noted the Chief Executive's communications, including apologies for absence. There were no declarations of interest made by members. The meeting also included a period of 72 seconds' silence to remember those who lost their lives in the Grenfell tragedy.

Appointments to Committees and Outside Organisations

Council agreed to remove Councillor Sof McVeigh from the Licensing Committee and Councillor Marie-Therese Rossi as the Council's nominee to the Board of Trustees of the Chelsea Non-Ecclesiastical Charity.

Any Other Oral or Written Items

Councillor Sof McVeigh, Lead Member for Housing, thanked Dan Hawthorn, Executive Director of Housing and Social Investment, who was leaving the Council's employment.

The meeting concluded at 9:05 pm.