Labour councillors have claimed that a recent council tax increase will disproportionately burden the poorest residents in Kensington and Chelsea, effectively doubling their financial strain and increasing the likelihood of debt and homelessness.

During a Full Council meeting on Wednesday, July 22, 2026, Councillor Monica Press, Leader of the K+C Labour Group, argued that the 4.99% council tax hike, coupled with a reduction in council tax support from 100% to 90% for low-income households, would lead to increased debt, potential homelessness, and higher costs for the council in debt collection. Councillor Press stated that this change would double the burden on the poorest in the borough and the likelihood of debt and debt collection and the costs it costs the council to collect those debts. And these debts are collected by bailiffs and can result in homelessness.

Councillor Emma Will, Deputy Leader and Lead Member for Finance and Property, defended the decision, citing the council's challenging financial position. She explained that a £127 million cut to the council's budget over the next four years, due to government reforms, necessitated the tax increase and the reduction in council tax support. Councillor Will elaborated that the current Labour government has reformed how council taxes are funded, and we now have to find 127 million of cuts out of our budget in the next four years. That's about 50% of our controllable budget. She added that savings alone were insufficient to bridge the gap.

Councillor Press countered that Kensington and Chelsea remains one of London's wealthiest boroughs and that choices could be made to avoid such measures. She highlighted that the council tax support reduction would save the council £440,000 annually, a figure she deemed insignificant compared to the potential hardship faced by vulnerable residents. Councillor Press noted that by raising council tax this year by 4.99% across the board and reducing council tax support by 90% to 90%, this council has doubled the burden on the poorest in the borough... And just to save £440,000 a year when the tax on second homes raises much more.

Councillor Will also mentioned the introduction of a second homes tax for those who are more able to pay as part of the council's efforts to manage its finances. She stated that the council had previously found 20 million of savings last year, a record, and intended to continue similar efforts. However, she stressed that the gap is so huge that we just can't do it with savings alone, and that means, regrettably, we've had to put taxes up.

Youth Council member Ms. Ayesha Khan had initially raised the concern, questioning how the council would support low-income households facing these changes and ensure they were not forced to choose between paying council tax and affording essential items like food and clothing. Councillor Will assured that the council do have help, about 15,000 people, with a sort of cumulative £14 million support of locals for payment ports and low-income supports as well. And those kind of hardship funds, we know this is important. We'll continue to be as generous as we can.

Councillor Will also explained that Kensington and Chelsea previously had one of the most generous council tax support schemes in London, helping around 8,000 households each year with their council tax bills. She clarified that Previously, there was 100%. Now, it's gone to 90%, and that does mean some people will now have to pay a little bit more of council tax.

Further details on the council's financial position and reports can be found in the Public reports pack from the meeting.