OXFORD City Council says it is facing ‘tough choices’ over the coming months, and it is possible some services may have to be cut.
The local authority highlighted the impact of Government austerity, Covid-19 and the cost of living crisis as reasons for the financial uncertainty.
Austerity has seen a £7 million reduction in funding over the last decade, the council reported, and receives no direct grant funding from the Government for its core activities.
The council maintains 17 community centres across the city, plus five leisure centres and various youth clubs.
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Meanwhile, the pandemic and cost of living crisis have had a ‘significant impact’ on the council’s ability to generate income.
In a statement, the local authority said: “Oxford Direct Services had to reduce its services significantly during the pandemic which impacted its revenue.
“Income from car parks, leisure centres and town hall room hire are all down, and rent from the city council’s commercial properties in Oxford remains negatively affected.
“All of these income streams remain lower than pre-pandemic.
“The total financial impact of the Covid-19 pandemic on the city council over the period 2020-2026 is forecast to be £23 million, with the city council forced to use 50 per cent of its reserves (£11 million) to support frontline services.”
The statement added: “The city council is looking hard at scope for further efficiencies and income generation to mitigate impact on services, but the financial picture means that some council services may need to be reduced.
“The work carried out by the city council on the budget over the last year means the organisation has some time to plan for and implement any changes.
“If service reductions are needed, priority will be given to protecting services that support the most vulnerable in Oxford, and maintaining a high standard of core services, such as bin collections and street cleaning.”
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The council will release its draft 2023/24 budget and 2024/27 medium-term financial plan in December, as normal, however the financial picture means it has started planning earlier this year.
Ed Turner, the council’s deputy leader and cabinet member for finance and asset management, said: “We have spent years generating income to offset Government cuts, and making backroom cuts and efficiency savings.
“Now, after a decade of austerity, there is no low hanging fruit left.
“We are looking at ways to save money and generate income to mitigate the impact and avoid needing to reduce services, but if we do not receive additional funding from the Government, there will be some tough choices to be made.”
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This story was written by Liam Rice, he joined the team in 2019 as a multimedia reporter.
Liam covers politics, travel and transport. He occasionally covers Oxford United.
Get in touch with him by emailing: Liam.rice@newsquest.co.uk
Follow him on Twitter @OxMailLiamRice
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