Oxfordshire council to set out plans to close £13.9m budget deficit

The council's budget for 2024/25 included broad plans for 2025/26, noting additional funds would be required for demographic growth in social care, increased waste tonnages, anticipated population growth, housing changes, and inflationary pressures.

At that early stage, it was calculated a shortfall of £13.9 million would need to be addressed for 2025/26.

This shortfall could increase with any additional or new pressures and decrease with any funding or new savings.

The cabinet will be presented with the updates on Tuesday, October 15, with new budget proposals to follow in November and a final budget set for February 2025.

Like other councils across the UK, Oxfordshire County Council is awaiting news on the newly elected government's approach to local government finance, which could be partially covered in the chancellor's autumn statement on October 30.

Over the past decade, local government grant funding has been reduced, while services have faced increased demand, particularly in children's and adult's social care.

This has resulted in widespread financial challenges in the sector, the county council said.

A balanced budget, in line with available funding, will need to be set in February 2025.

Calculations at this stage are based on a 1.99 per cent council tax rise, although the new government has not set a policy on council tax rise limits.

Other key information, such as how the national living wage will operate from April 1, 2025, is also yet to be confirmed.

Councillor Dan Levy, the county council’s cabinet member for finance, said: "Although October is when our budget setting process goes up a further gear, a lot of planning takes place before this.

Dan Levy, Oxfordshire County Council's cabinet member for finance (Image: West Oxfordshire District Council) "We are keen to see how the new government will approach local government finance given the well documented challenges and difficulties that councils have faced in recent years.

"At Oxfordshire County Council, our sensible financial management and forward planning has meant we’ve remained in a resilient position.

"However, as was clear back in February, our starting point for 2025/26 is a £13.9m shortfall in funding, with any new pressures potentially adding to that."

While the chancellor's statement on October 30 may provide more information, individual councils will not be informed about grant funding levels until late December.

The council will publish its first detailed budget proposals for 2025/26 in late November.

A consultation will follow, building on information already gained from locals through the council’s annual residents’ survey, a budget simulator exercise, and engagement events.