The Royal Borough of Kensington and Chelsea's Full Council met on 22 October 2025, and addressed the borough's medium-term financial strategy, adopted an updated local code of corporate governance, and approved changes to standing orders and the municipal timetable. Councillors also debated motions on pension fund investments in temporary accommodation, becoming a Borough of Sanctuary, street scene enhancements, changes to the Integrated Care Board¹, and council tax waivers for terminally ill residents.

Medium Term Financial Strategy

The council approved the Medium Term Financial Strategy (MTFS) 2026/27 to 2029/30, which outlines the four-year outlook for revenue and capital income and spending. The strategy addresses a projected budget gap of £41 million in 2026/27 and £118 million over the next four years, partly due to the government's proposed changes to local authority funding. These changes are estimated to reduce the council's funding by £82.7 million over three years. The council plans to respond to the government consultation, arguing that the proposed changes disproportionately impact inner London boroughs. The MTFS also incorporates a Transformation and Savings Programme to modernise practices and identify savings across the council.

The report also noted that the government is implementing reform to local government funding with effect from 2026/27. The Council will continue to lobby for any reform to take into account the challenges the Council faces being a smaller borough with a high number of daytime visitors, high housing costs and a high population density. It will also argue that authorities that have kept council tax low should not be punished by any changes to the funding formulae.

Treasury Management Outturn Report

The council noted the Treasury Management Outturn Report 2024/25, which summarised the council's treasury management activities for the year, in compliance with the Chartered Institute of Public Finance and Accountancy (CIPFA) Code of Practice on Treasury Management 2021. The report highlighted that the cash investment portfolio had a weighted average yield of 4.67%, while the debt portfolio had a weighted average interest rate of 4.13%.

Urgent Key Decisions

The council noted the key decisions taken under urgency provisions since 17 June 2025. These included securing £295,000 in grant funding through the Greater London Authority's Greener Schools Programme to install energy efficiency measures in three schools, and £96,000 from the Department for Education for Sustainable Drainage Systems in four schools. Councillor Elizabeth Campbell, Leader of the Council, cited a firm deadline of 27 June 2025 from the Department for Education as the reason for the urgency.

Local Code of Corporate Governance

The council adopted the amended Local Code of Corporate Governance for 2025/26, following a recommendation from the Audit and Transparency Committee. The code is based on the seven core principles from the Good Governance Framework, and identifies the documents and processes in place to ensure compliance. The council is required to prepare an Annual Governance Statement to report on its compliance with the local code.

Changes to the Constitution

The council agreed to several changes to its constitution, as recommended by the Administration Committee:

• An opening time of 10 am, two weeks before the meeting, for questions and requests to speak.
• Additional text to the Functions Delegated to Officers, relating to the Annual Treasury Management Strategy.
• Amendments to Contract Regulation 8.04.
• Amendments to the Municipal Timetable, including a new Annual Council date of 27 May 2026.
• A new Standing Order 14.12, to allow undebated motions to lapse after the four-yearly elections.

Motion: Use of some Pension Fund money for Temporary Accommodation

This motion notes the growing pressure of temporary accommodation² and welcomes the work underway to use monies made available by the Pension Fund for levelling up purposes to acquire temporary accommodation properties. It also promotes the financial model that makes using monies made available by the Pension Fund possible, so that this Council and other councils can unlock external institutional investment to acquire the homes needed to help address the problem. The Investment Committee, in particular the chairman Cllr Marshall, were thanked for their work in managing the Fund.

Motion: Proposal for RBKC to be accepted as a Borough of Sanctuary

This motion asks the Council to commit fully to creating a more inclusive and supportive environment for those seeking refuge, and to ask for recognition to be acknowledged as a Borough of Sanctuary by the City of Sanctuary UK network. The motion notes that many London boroughs are working towards becoming Boroughs of Sanctuary, and that Kensington and Chelsea has a history of opening its arms to migrants and refugees.

Motion: Future enhancements to the Street Scene

This motion welcomes the Amazing Spaces programme, but notes the contrast between Hogarth Road, and nearby roads managed by Transport for London (TfL), such as Earl's Court Road and Warwick Road. The motion calls on the Lead Member for Environment and Planning to ensure that there will continue to be funding for future enhancements to the street scene in Earl's Court, and that TfL are held to account for their responsibilities and failings.

Motion: Establishment of a Grenfell Scholarship

This motion welcomes calls for the establishment of the Grenfell Education Hub, and supports financial assistance and educational opportunities to young people facing similar socio-economic circumstances as those affected by the Grenfell disaster. The motion states that the Grenfell Legacy should include a meaningful, lasting investment in the future of the next generation, and that the Council will continue its dialogue with Government Ministers to explore and pursue the creation and funding of this scholarship initiative for the Government to provide further financial support to schools in the immediate vicinity of the Grenfell tower.

The motion was amended by Councillor Kim Taylor-Smith, Deputy Leader, and seconded by Councillor Sof McVeigh, Lead Member for Housing Management, Housing Safety & Building New Homes. The amended motion welcomes calls for the establishment of the Grenfell Education Hub, and notes that the Council's Fairer Action Plan has committed to deliver a new programme of bursaries for those young people.

Motion: Changes to the Integrated Care Board

This motion raises concerns about the recent changes announced by the Government to reform Integrated Care Boards (ICBs) and their funding models, and the detrimental impact on the residents of Kensington and Chelsea. The motion calls on the Council's Members of Parliament to write to the Government urging them to review the funding formula for the NHS and local government, to remind the NHS that local authorities are legally barred from providing primary care services, and to reestablish an independent scrutiny body to ensure local people can hold their health services accountable.

Motion: Waiver of Council Tax for Residents with a Terminal Illness Prognosis of 12 Months or Less

This motion resolves to introduce a full waiver of council tax for residents who have been medically certified as having a terminal illness with a life expectancy of 12 months or less, irrespective of age, income, or existing exemptions. It also resolves to ensure that the application process is simple and compassionate, and to work in partnership with local health services, hospices, and social care providers to ensure all eligible individuals and families are informed about this exemption. Finally, it resolves to advocate for similar national reforms.

Appointments to Committees

Councillor Mohammed Bakhtiar replaced Councillor Toby Benton on the Environment Select Committee. Councillor Emma Dent Coad was appointed to the Investment Committee, and Councillor Toby Benton to the Overview & Scrutiny Committee.