Kensington and Chelsea explores 'tourist tax' amid £120 million funding gap
Kensington and Chelsea council is exploring the introduction of a 'tourist tax' as part of a wider strategy to address significant financial challenges, including a projected funding gap of over £120 million.
The council's Leadership Team met on Tuesday, 13 October 2026, to discuss the adoption of a new Council Plan for 2026-2030, which outlines measures to mitigate the shortfall. Councillor Elizabeth Campbell, Leader of the Council, highlighted the urgent need for new revenue streams.
A public consultation on challenging the council's current funding arrangements received 1,499 responses, with 93% in favour of such a challenge. Residents specifically favoured challenging the Government's 'Fairer Funding' formula, which is projected to reduce the Council's resources by £108 million over four years. The current arrangements are dictated by this formula. Residents prioritised retaining a greater share of locally generated income, such as business rates, and having more time to adapt to funding changes.
Beyond a potential 'tourist tax', the council is also considering other revenue-generating strategies. The Council Asset Strategy 2026-2030 aims to 'release value from assets that no longer earn their place' and 'increase income generation' through commercial property management and exploring new advertising sites. These measures are detailed in the Public reports pack for the Leadership Team meeting.
The meeting agenda and related documents can be found on the council's governance portal.
Agenda frontsheet 13th Oct 2026 Public reports pack 13th Oct 2026