Oxfordshire County Council faces £11.2 million funding gap

The gap, which has risen from £9.1 million to £11.2 million, emerged after proposed savings of more than £9.8 million were outlined by the council last November in an attempt to create a balanced budget.

Councillor Dan Levy, Oxfordshire County Council’s cabinet member for finance, said: "We did not receive any additional money to close what was a £9.1 million gap when we first published our draft budget in late November.

Councillor Dan Levy, the council’s finance chief, said the council will have to make some really tough decisions (Image: West Oxfordshire District Council)

"The Government has spoken widely about a 6.5 per cent increase of funding to local government.

"Sadly, this is a case of smoke and mirrors.

"This increase assumes councils take the maximum council tax rise and includes funding announced this time last year.

"There is nothing new in this sum at all."

He added: "Local government as a whole has expressed its deep disappointment.

"We are clearly now going to have to take some really tough decisions.

"Our budget proposals for 2024/25 already include more than £9.8m of savings.

"The whole of local Government was already looking at the second half of the decade with great concern and the Government’s announcement on December 18 did nothing to alleviate those concerns.

"Our track record of responsible financial management means that Oxfordshire County Council has been in a more resilient position than many other authorities.

"However, the overall position is extremely challenging and additional savings will need to be found."

All councils are having to cope with the consequences of the slower than predicted fall in inflation in the UK during 2023.

The lasting high costs and prices for energy, fuel, materials, and staff costs are presenting a challenge.

The council is also facing pressures from the rising national costs of supporting children and young people, the mounting expenses of social care and care placements for both children and adults, and a nationwide shortage of social care workers that has escalated the dependence on agency staff and subsequently, higher costs.

These variables are still bear heavily upon the council, whose overall projected budget for 2024/25 is estimated to be more than £614 million.

The council’s Performance Scrutiny Committee is set to review the situation on January 19, prior to an updated draft of the budget being presented to the council’s cabinet on January 30.

No final decision regarding council tax or any element of the budget will be finalised until February 20, 2024, when all 63 county councillors convene at the annual budget-setting meeting of the county council.