Oxfordshire Council announces plans to cut £900k deficit

Previously, efforts were made to tackle an £11.2 million deficit.

The significant shortfall followed the central government grant funding announcements, which did not fulfil demands of local authorities nationwide.

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The current proposals are part of the final budget up for the council’s cabinet consideration on January 30.

The annual budget-setting meeting involving all 63 county councillors will make the final decision on February 20.

Cabinet member for finance, Dan Levy, has criticised the central government for their lack of support (Image: West Oxfordshire District Council)

Councillor Dan Levy, Oxfordshire County Council’s Cabinet member for finance, said: "Councils throughout the country made clear to central government through the Local Government Association and other channels that more funding was needed this year and in following years due to the high levels of pressures in areas such as social care, special educational needs and other services.

“There has been deep disappointment at the failure of government to address these issues.

“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.

He added: "This final batch of proposed measures means we are able to put forward a balanced budget but it has been a difficult process and we know this is mirrored in town and county halls throughout the land.

"We know that we, and local government as a whole, will continue to face difficult financial challenges in 2025/26 and beyond.

"It remains the case that our budgets for both adults and children’s social care will increase in real-terms after accounting for inflation in 2024, with investments to meet pressures outweighing savings proposals."

The newly proposed measures include several fiscal adjustments.

District councils have indicated an increase in the amount of council tax projected to be collected in Oxfordshire, adding £300,000 to the fund.

The county council plans to cut £100,000 from contingency funding.

Additionally, the council’s award-winning innovation hub, iHub, is set to become self-financing, saving £300,000.

Launched by the council in 2018, iHub aims to foster innovation, focused on areas like intelligent infrastructure, health, environment, mobility systems and local economy improvement.

Moreover, on-street parking and resident parking permit charges are set to rise, aiding in the maintenance of controlled parking zones, generating an added £200,000.

The measures come after it was revealed earlier this month that the funding gap in the budget plan had increased by more than £2 million.

The gap had risen from £9.1 million to £11.2 million, and 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.

The council is 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.