A letter from the Leader of the Council
Council Tax 2022/23
Dear Resident
We want to give those who live and work in Kensington and Chelsea the very best opportunities we can. You have shared your views on what you value the most and this has helped us to shape our revised Council Plan. Each year, the Council sets a balanced budget that aligns our spending with our five Council Plan commitments.
While these priorities are all-important, we also know that many households are facing very immediate financial challenges with the cost of rising bills and general cost of living. As a part of the Council’s COVID-19 recovery programme we will be looking at how we can best support those in need, including a below inflation level increase in Council Tax for 2022/23.
The Council is working with residents, schools and businesses to ensure a fair recovery and opportunities for all, so that Kensington and Chelsea can continue to be a great place to live, work and learn. We will improve wellbeing by investing in digital inclusion, leisure centres and outdoor spaces, as well as in the new Green Plan.
In 2022/23, the Council will spend £433m on day to day running costs to deliver services to the borough’s residents, businesses and visitors. This excludes the £121m of housing benefit we administer on behalf of Government and the £77m that is for schools through the Dedicated Schools grant.
Spending next year will include £233m of investment into homes, highways, the environment, open spaces, schools, and childcare services.
The Council is committed to achieving Net Carbon Zero by 2030 and the indicative cost is around £144m for our Green Plan. We have set aside over £100m for our own housing stock, £8m for our schools and £4m for Council sites.
We will be building 600 new homes across the borough, of which at least 300 will be for social rent, and improving our social housing over the next four years, with an investment of £315m.
Additional Government funding in 2022 is welcome and will help us to manage some short-term pressures, but in future we will need to rely more heavily on income generated locally rather than government grant funding. There are further spending pressures of between £20m and £30m over the three years from 2023. Much of this pressure is driven by projected increases in demand for services such as housing and social care, the changing economic conditions and recovery from Covid-19.
We will need to continue to deliver more, for less. Our spending will continue to be prudent and based on the priorities which are most important to you, as outlined in our latest Council Plan.
Many residents and businesses in the borough have been badly affected by Covid-19. The Council has earmarked an £8m recovery fund to continue to meet the challenge of supporting residents and businesses.
I am extremely proud of our staff who have worked tirelessly supporting our communities and keeping our borough safe and clean. Our Public Health team have helped the NHS deliver the successful vaccination and booster programme and ensured Covid-19 testing remains widely available across the borough.
We will continue to support the most vulnerable in our communities and Grenfell Recovery also remains our top priority and we plan to spend £9.1m this year as part of a long-term plan to help those most affected.
Your Council Tax for 2022/23
The Kensington and Chelsea element of your Council Tax this year will rise by 1.99% (excluding Garden Squares), an increase of £18.94 a year or £1.58 per month for the average band D household. This is made of up two separate elements:
- The first is a Council Tax increase of 0.99%.
- The second element is a 1% increase in what is often referred to as the Adult Social Care precept. The additional income raised will contribute towards meeting the demand for adult social care services.
Your Council Tax will generate almost £96m towards your services and I would like to assure you that your Council Tax bills remains one of the lowest in the UK.
The Council also collects money through Council Tax on behalf of the Greater London Authority (GLA), which is set by the Mayor of London.
You will be aware that the cost of energy is rising significantly. The Government is providing a £150 one-off Energy Bills Rebate for most households in Council Tax bands A-D. These rebates will be paid in April and May. If you currently pay your Council tax by direct debit, there is no need to take any further action, you will receive your rebate in April or May. If you don’t pay by direct debit, there is still time to sign to pay by direct debit online and this is the quickest and easiest way to receive the rebate or phone 0207 368 8906. The Council will receive part of the £144m discretionary funding the Government has announced to support those in most need living in Bands E to H. Further details will be published on the Council’s website when available.
We appreciate that some people are worried about being able to pay their Council Tax. The Council currently continues to offer the maximum local Council Tax relief -up to 100% for the 13,000 residents on the lowest incomes. This is one of the very few schemes in the country to still offer 100% support to those who need it.
Elizabeth Campbell
Leader, Kensington and Chelsea Council