Kensington and Chelsea, one of London’s richest boroughs, is at the center of an epic funding unraveling. Over the next three years, this funding gap may amount to as much as £82.7 million. Council leaders are raising the alarm on financial stress. They fear that doing so would have a devastating effect on community services that are essential, especially in high-poverty distressed areas.
The Royal Borough of Kensington and Chelsea (RBKC) has recently approved a 4% increase in its council tax for 2019/20. This decision would allow them to better address their own growing budgetary pressures. Local officials don’t think this increase will cut it. They expect a cut in direct transfers from the central government. Yet the borough is home to some of the wealthiest people in the entire country. Paradoxically, one-in-three children living there are in poverty.
A stark example of this disparity can be found in Golborne ward, located in the northern part of Kensington and Chelsea. Yet this area is one of the most deprived wards in London. It is facing an existential crisis and desperately requires focused, intentional assistance to free its residents to soar.
It has made their task even more difficult by adding huge swings in population. Every day, that number jumps from 140,000 to nearly 290,000 as tourists and other daily workers pour across the border into the city. This moveable population puts added pressure on local services, which further strains the borough’s already scarce resources.
With funding cuts all but guaranteed in the coming years, council officials will have to decide where to make cuts. They might cancel non-statutory services, such as much-loved community services such as the Baby Rhyme Time class at Brompton Library. These courses are essential in promoting healthy early childhood development and helping parents of the community.
Susana Mendonça, Political Reporter for BBC London, highlighted the tension between the borough’s affluent image and the underlying social challenges it faces. She reported from Kensal Town, where residents have expressed concerns over potential cuts to essential services that directly impact their daily lives.
Longtime local resident George Hencken expressed his concern for how 90 million dollars in funding changes would be harmful to the fabric of the community. “It’s alarming to think that programs designed for our children could be on the chopping block,” he stated. “These services are essential for families, especially in areas struggling with poverty.”
Aasim Hussain, a Kensington resident who has participated in the classes alongside his son Armaan, told us how valuable these community-based programs have been. “We rely on these programs not just for education but for social interaction and support within our community,” he said.
The government’s Fair Funding Review is coming under fire for failing to address housing costs. This is an oversight that underlines the expected needs assessment of deprivation measures between local authorities. London Councils has been sounding the alarm. This could mean some boroughs having their grant funding from central government cut by over 60%. This omission is particularly alarming. London has the highest level of households in poverty once housing costs are factored in.
Ishmael Palmer, who works in Kensington, noted the irony of the situation: “You can see wealth all around you here, yet so many families are struggling to make ends meet. It’s a tale of two cities within one borough.”
