K&C Council Underspends Budget, Transfers Millions to Reserves; Capital Projects Also Underspent

20 July 2025

Kensington and Chelsea Council has reported an underspend of £5.207m in its General Fund revenue budget for the 2024/25 financial year, with the surplus funds being transferred to reserves. Capital projects were also underspent. Of the £5.207m underspend, £381k will be allocated to the Car Parking reserve and £4.827m to the Budget Stabilisation reserve.

The Final Outturn 2024/25 - Revenue and Capital Monitoring Report was discussed at the Overview & Scrutiny Committee meeting on Tuesday 15 July 2025. The report detailed that the total General Fund revenue budget for 2024/25 was £195.100m.

Council performance metrics across key areas: Greener, Safer, Fairer, and Caring & Competent.

Key points from the report included:

A £5.207m underspend in the General Fund revenue budget, which will be transferred to reserves.
A transfer of £2.731m to the Housing Revenue Account (HRA) capital programme, against a budgeted transfer of £3.161m.
General Fund Capital Programme spend of £80.600m, an underspend of £17.825m. This underspend is attributed to slippage, expenditure funded from other sources, and expenditure funded from capital contingency. Specific capital projects affected include Children's and Families, Environment and Neighbourhoods, and Housing and Social Investment.
HRA Capital Programme spend of £70.494m, an underspend of £14.562m. This is due to slippage in main programme works and the Lancaster West Main Refurbishment. Specific capital projects affected include HRA Main Programme Works and Lancaster West Estate.
An underspend of £0.841m in the Dedicated Schools Grant (DSG).

The report also provided details on revenue outturn, capital programme, section 106 and the Community Infrastructure Levy, schools and education, savings, and reserves.

Councils Involved

Kensington and Chelsea

Meetings Involved

the Overview & Scrutiny Committee of Kensington and Chelsea Council on 15 July 2025

People Involved

Cllr Mohammed Bakhtiar Labour Party • Colville

Cllr Toby Benton (Vice-Chair, Licensing Committee, Family Services Spokesperson ) • Labour Party • Colville

Cllr Joanna Gardner (Vice-Chair, Housing and Communities Select Committee) • Conservative Party • Pembridge

Cllr Gregory Hammond (Chair, Environment Select Committee) • Conservative Party • Courtfield

Cllr Preety Hudd (Vice-Chair, Overview and Scrutiny Committee, Vice-Chair, Investment Committee) • Conservative Party • Campden

Cllr Lucy Knight (Chair, Adult Social Care and Health Select Committee) • Conservative Party • Holland

Cllr Will Pascall (Chair, Family Services Select Committee) • Conservative Party • Stanley

Cllr Claire Simmons (Chair, Housing and Communities Select Committee) • Labour Party • Notting Dale

Cllr Mary Weale (Chair, Overview and Scrutiny Committee) • Conservative Party • Brompton & Hans Town

Cllr Sidney Yankson (Vice-Chair, Audit & Transparency Committee) • Conservative Party • Redcliffe

Jacqui Hird

Topics

Royal Borough of Kensington and Chelsea Final Outturn 2024/25 - Revenue and Capital Monitoring Report General Fund revenue budget Housing Revenue Account (HRA) capital programme General Fund Capital Programme Dedicated Schools Grant (DSG)