A mammoth £20.8million is due to be spent improving Kensington Town Hall in what a residents' pressure group has described as a 'slap in the face for taxpayers'.

Tonight, the cabinet of Kensington and Chelsea Council is due to discuss ambitious plans for massive works at the borough's administrative centre, in Hornton Street.

The project, which has risen in price by more than £2m, will see the overhaul of 1971 electronic systems and office space at the well-known centre, which lies off Kensington High Street.

A total of £6.8m has been earmarked for design and refurbishment. A report noted that 'critical to the provision of effective, quality space is the use of appropriate furniture'.

But the plans have prompted criticism from some members of the community.

One man even called for a referendum on the plan.

Knightsbridge resident Justin Downes, who is a member of borough pressure group Residents First!, said: "It is outrageous that at a time when most organisations are looking to cut headquarter costs, RBKC can spend money on this lavish improvement.

"This is a slap in the face for hard-pressed taxpayers. This issue should be put up for a referendum."

But the council claims by spending millions on the centre, it will save taxpayers' cash.

A spokesman said: "When the works are complete, the number of staff based on a single site at the town hall will increase by nearly 50 per cent and four buildings currently being used by the council will either be sold, leased out, or the leases will not be renewed.

"The works will save more than £2.5m a year and deliver a 25 per cent reduction in CO2 emissions. "The savings that the work will generate means that the entire cost of the project will be paid for in six and a half years."