Council Tax Referendum Thresholds: Impact on Notting Hill Households Compared to Other London Boroughs

The government has set the 2026-27 council tax referendum threshold at 5 per cent for most English authorities, including Kensington and Chelsea which administers Notting Hill. Any proposed increase above this level requires a local ballot before the council can implement the change.

The threshold adjustment follows the March spending review and applies to the financial year beginning in April 2027. Kensington and Chelsea last held a referendum in 2019 when it sought to exceed the cap then in force, and current budget forecasts indicate the council is again considering options above 5 per cent to cover adult social care and street maintenance costs.

Effects for Notting Hill residents

Households in Notting Hill pay an average band D council tax of £1,812 this year. A rise to £1,903 or higher would trigger the referendum requirement, with ballots sent to all registered electors in the borough. The vote would decide whether the increase proceeds or whether the council must find alternative savings or seek government permission for a lower rise.

Compared with Westminster City Council, which projects a 4.8 per cent increase and therefore avoids a referendum, or Hammersmith and Fulham which caps its rise at 4.9 per cent under its own medium-term plan, Kensington and Chelsea faces a higher likelihood of a public vote. Local service budgets show that each 1 per cent rise yields roughly £2.1 million for the borough, funds that support waste collection rounds along Portobello Road and library hours at Notting Hill Gate.

Next steps

The council must publish its draft budget by 31 January 2027 and confirm whether the 5 per cent limit will be exceeded. If a referendum is required, polling is scheduled for May 2027 alongside other local elections. Residents can submit comments on the proposals during the statutory consultation period that opens in February.