HOUSEHOLDS in Oxford are likely to face a council tax rise of almost £60 next year, budget papers have revealed.

It is the third year in a row that both Oxford City Council and Oxfordshire County Council are expected to put up the rate by the maximum amount, with councillors due to vote on proposals in February.

Speaking this morning, city council finance boss Ed Turner insisted that shrinking government support meant it would be 'reckless' to consider a council tax freeze.

He added: "It would place our financial future in danger.

"We are trying to safeguard council tax benefit, the living wage and funding for homeless services but the Government continues to dilute grant funding.

thisisoxfordshire:

  • The city council pledged to protect support for homeless people

"There is growing pressure on our services and inflation has also gone up because of uncertainty around Brexit, so we have no option but to consider a rise in council tax."

The city council unveiled its proposed budget today. It is due to be considered by senior councillors next week before going out to public consultation.

Mr Turner said it represented 'our best efforts, in difficult financial circumstances, to maintain frontline services, especially for the most vulnerable'.

Proposals include a £60m loan to a newly-created Oxford Housing Company, which will be owned by the council and used to build a mix of new homes across the city, and another £10m for buying properties to accommodate homeless people.

It will also commit £2.22m towards the refurbishment of the Museum of Oxford, £4.9m to plans for a 'Horspath Sports Village', £4.16m in a loan for the planned redevelopment of the Oxpens and £3.6m towards work on community centres including those in East Oxford and Jericho. 

Some £2.8m of cash is also earmarked for the extension of Seacourt Park and Ride, which faces opposition from a range of local groups.

thisisoxfordshire:

  • Community centres are set for a £3.6m boost. Picture: Richard Cave

Meanwhile, the county council unveiled its budget proposals on Wednesday. 

They include £28m of savings, bringing the amount planned between 2010 and 2020 from £361m to £377m.

Finance chief Lawrie Stratford said: "We’ve taken difficult decisions over the last six years because we forecast rising demand for services and reducing Government funding.

"Our auditors have confirmed our four-year budget plan is ‘realistic’ and that we have ‘put in place proper resources to secure value for money’ at a time when other county councils are talking about unfunded gaps in their budget."

Council tax increases have been capped by the Government at 1.99 per cent per year, with a referendum required for bigger hikes.

This has resulted in Oxford City Council proposing the maximum increase next year. 

The county council's budget also assumes a 1.99 per cent rise. On top of this, it is also able to levy an extra two per cent precept to help pay for social care.

For band D households, this would mean the city's share rising from £284.52 to £290.19 and the county's share rising from £1,281.64 to £1,332.78.