FIVE hundred jobs are being axed from Oxfordshire County Council.

The council announced today it is planning to make 10 per cent savings of £90m in its budgets over the next five years — with a tenth of its 5,000 staff to go.

While a spokesman said it hoped to “focus on natural staff turnover and managing vacancies” he admitted there would be redundancies.

The figure does not include school staff.

The county is blaming an expected loss of money coming from central government because of the recession and the bail-out of the banks.

Yet, despite cutting a tenth of his staff, council leader Keith Mitchell said it would still be freezing council tax if the Conservative party won the next election.

Mr Mitchell said: “Obviously local government nationally and here in Oxfordshire would rather not be in this position.

“However the responsible thing to do is realise what is on the horizon and plan well in advance.

“We are being responsible with residents’ money and protecting their services in the worst national economic climate in generations.

“Oxfordshire County Council has the highest possible Audit Commission rating for the way it manages finances and it has won that status through deploying just this sort of responsible forward planning. We have a great record of driving change and efficiencies, but we are not complacent and we can do even better.”

He added: “This is a five-year plan, and it won't happen in one go. That also means that we can review matters as we set our budgets each year and, if the financial picture nationally improves, we can react accordingly.”

The council will know how much grant it will receive from central givernment later this year.