FAMILIES in Oxford will be hit in the pocket but get less for their money under a compromise city council budget set late last night.

Average Band D households will end up paying a four per cent increase in the city's share of the council tax in April - about £5 a year - double the amount proposed at the start of the evening's meeting.

And cuts will be made to services as the council - facing a £5m budget deficit - struggles to balance the books.

Amid dramatic scenes at the Town Hall, Labour and Green councillors joined forces to hijack the Liberal Democrat administration's budget just 11 weeks before half the council's 48 seats are up for grabs in an election the Lib Dems claimed would now be a "referendum on council tax".

The major sticking point was the size of the tax rise. The Lib Dem administration refused to budge over a two per cent increase, while Labour and the Greens voted through a four per cent rise, to bring in an extra £700,000 over three years.

The cost to an average Band D homeowner will be about £5 a year for the city's portion, with the total bill, including county council and police charges, rising to £1,484.66, an increase of £60.

Labour leader Bob Price said: "For the cost of about two pints a year, people will now get better recycling services, better playgrounds, waste collection hit squads and more trees."

In effect, the 2008-9 budget contains ideas from all three main parties.

But last night's horse trading by Labour and the Greens meant the following ideas were included at the 11th hour:

  • Waste collection hit squads to target litter louts, at a cost of £40,000 a year
  • Peers Sports Centre to stay open until August - £100,000
  • Free blue wheelie bins for extra recyclable waste - £15,000 a year
  • More play equipment for parks - £107,000 a year
  • Tree planting programme - £20,000 a year All three parties backed a trial weekly food waste collection. The year-long pilot project, covering 6,000 homes, will start in April. About 800 tonnes of food scraps will go for composting instead of being tipped in landfill sites. If successful, the scheme will be extended throughout the city from April next year.

Calls by the Greens to sell historical artefacts - including 11 muskets valued at £80,000 - were dropped.

Council leader John Goddard said: "This council has a Labour legacy of poor financial and organisational management - the public needs to be reminded and beware.

"For years Labour had a one-track approach if there was a problem - throw money at it and put up council tax."

Green group leader Craig Simmons threw chocolate coins across the council chamber and joked: "That's the only money that will be thrown around tonight."

  • There was good news for the Donnington Doorstep family centre, when councillors pledged to give it £60,000 over three years it had initially been told it was not getting.