People living in Oxford could face an increase in council tax as the city council sets out its budget for the next four years.

Oxford City Council said it is announcing plans for ‘a balanced budget’ over the next four years, despite facing ‘unprecedented financial pressures’.

The authority said it has been impacted by inflation, particularly in the rising cost of materials needed to deliver the council’s capital works and repair and maintenance programmes.

Energy costs are also rising, and the council’s gas and electricity bill is expected to be at least £1.5m higher.

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The budget proposes an increase in council tax by 2.99 per cent for 2023-24.

Additional income of £7.3m, and £2.5m ongoing from 2026-27, will come from additional sources, including letting the council’s former base at St Aldate’s Chambers which is expected to generate £6m over the next four years.

There will also be increases in some fees and charges for council services, including an additional £15 a year for garden waste collection, and an extra 50p per hour for city centre parking.

Councillor Ed Turner, the council’s cabinet member for finance and asset management said:  “Austerity, Brexit, Covid-19, Russia’s illegal war in Ukraine and now spiking inflation.

"The last decade has seen an unprecedented squeeze on the finances of councils across the country.

“While most councils have had to make deep cuts and some have declared bankruptcy, in Oxford we have maintained vital services, and we have even managed to invest in new facilities – including the new Bullingdon Community Centre.

“I’m pleased to say that after a lot of hard work from every team across the council, we have achieved a balanced Budget – and we have done it without making major cuts to front-line services.

“We’ve done this by using the Oxford Model. We generate significant amounts of income, both from our commercial property portfolio but also companies that we own and partnerships that we are involved in.

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“For instance, we get a return from solar energy that we have invested in locally.  Our locally-owned housing company OX Place builds homes, including affordable homes, and that gives the Council a return, rather than the profit being captured by the shareholders of a private developer.

“Our direct services company, ODS, also provides its services to local companies and organisations as well as our community, again providing a return to the city council. Together, these initiatives support our council’s finances.

“We also plan to consult on charging extra council tax on second homes as and when the law changes to allow us to do so – we are the first district council to propose this in the country, but we believe it is right that those with the luxury of a second home make a fair contribution to local services.”

The council’s cabinet will discuss the financial strategy at a meeting tomorrow (December 14) evening.

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This story was written by Anna Colivicchi, she joined the team this year and covers health stories for the Oxfordshire papers. 

Get in touch with her by emailing: Anna.colivicchi@newsquest.co.uk

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