Battle lines have been drawn ahead of tonight’s crunch budget-setting meeting at Oxford City Council, with a massive council tax hike on the cards.

The fierce debate is likely to surround council tax increases.

On the day that BMW announced it was making 850 workers redundant from its Cowley car plant, council tax increase proposals from the three main political groups vary between two and four-and-a-half per cent.

The ruling minority Labour administration plans to increase its share of the council tax by 4.5 per cent, as do the Greens.

Labour will require the support of another group — probably the Greens — to get their budget through.

Green group leader Craig Simmons said: “It is our duty to keep it as low as we possibly can, while keeping the council liquid.

“It is sensible to go with 4.5 per cent.

“Getting down to two per cent is irresponsible — and is even lower than the county council is doing.”

said: “We wanted to keep down council tax increases as low as possible.

“We have to be prudent, but not prudish in these financial times.

“Our first duty should be to help citizens at a time when everybody is feeling the difficulty in the economy.

“Keeping an unfair tax down should be our first duty.”

Last week, Oxfordshire County Council increased its element of the final council tax bill by 3.75 per cent, while Thames Valley Police increased its share by 4.5 per cent.

The final bill is made up of elements from the county council, city council, Thames Valley Police and parish council precepts.

The meeting starts at Oxford Town Hall , St Aldate’s, at 5pm tonight.