A NEW company could be set up to help rescue Oxford’s multi-million pound social housebuilding programme.

Oxford City Council is considering the move as a way of securing 354 homes at the new 885-home Barton Park estate.

The Labour-controlled authority warned last year that new government rules could force it to abandon its £48m stake in the flagship scheme, as well as plans to build a further 241 homes.

But senior figures yesterday revealed the new company – which would be wholly owned by the council – could be set up by May and would initially seek to borrow about £60m to revive its housebuilding plans.

Deputy leader Ed Turner told the Oxford Mail: “With pressures we face on housing, it is our duty to do everything in our power to see more homes built for local people at prices they can afford.

“No stone can be left unturned and this will be a really important part of realising our ambition for more affordable housing in the city.”

It is understood the council is also discussing whether it could transfer ownership of its 7,500 council homes to the housing company. This would prevent them from being forcibly-sold under the Conservative government’s Right to Buy reforms, but could prove more difficult as it would require agreement from Communities Secretary Greg Clark.

The plans were backed by Lib Dem leader of the opposition Jean Fooks, who said: “This will allow us to build social housing and keep it.

“But we also hope it will allow us to deliver a mix of housing, some private, as well so that we can cater for a range of people.”

It comes ahead of a vote on Monday on the local authority’s £20m budget for 2016/17, which was consulted on in December and January.

Senior figures said no cuts to services would be made, despite the government reducing the council’s grant funding by 47 per cent since 2010. It is due to be completely self-funding by 2019/20.

Chief executive Peter Sloman said: “Oxford is almost unique, in that we are getting through these spending cuts without any cuts to public services and still running one of the largest capital programmes in our history.

“It seems like a magic trick, but it has been achieved through efficiency savings and our efforts at income generation.”

Over the past four years the council has saved more than £13.7m, which has partly come from increased parking fees and selling its services to other organisations.

On Monday, councillors will also vote on a four-year plan that includes funding for more than £1.6m of schemes across the city, such as improvements at community facilities in East Oxford, South Oxford, Wood Farm, Cutteslowe, Rose Hill and Blackbird Leys.

The schemes had been on a reserve list, but senior figures are now confident they will go ahead, in addition to other schemes already announced, including the £3.6m regeneration of Barton and £5.5m regeneration of Blackbird Leys.

The council has proposed a 1.99 per cent rise in its share of council tax. For a Band D household this will mean paying 44p more per month. It would be on top of an extra £3.80 per month proposed by the county council.

SAVED SCHEMES:
2016/17
* Museum of Oxford improvements – £434,390
* Housing renovation grants – £50,000
* CCTV in Speedwell Street and St Clement’s – £65,000
* Allotment improvement – £61,350
* Leisure depots – £18,760
* South Oxford Community Centre café – £50,000
* All-weather Leys Leisure Centre – £227,992
* Biomass store at Cutteslowe Park for new pool – £53,160
* Tennis courts improvements – £96,738
* Multi-use games areas – £36,714
* Parks improvements – £50,000
* Car parks equipment – £50,000
* Solar compacting bins – £50,000
* Parks and cemetery repairs – £150,000
* Skate parks, Northway, Bertie Place and Rose Hill – £210,000

2017-2020
* East Oxford Community Centre improvements (2017/18) – £670,000
* Wood Farm Community Centre improvements (2017/18) – £150,000
* Cutteslowe Park splash park (2017/18) – £200,000
* Community centres (2018-2020) – £1.5m