Oxford City Council has hired a part-time finance director because of problems recruiting permanent staff.

Peter Argent will take the job for six months, starting at the end of November, while the council re-advertises the permenant position.

The newly-created post of finance director, worth about £60,000 a year, is a crucial one for the council, which has been forced to make £3.8m of budget cuts this year.

Mr Argent, a self-employed chartered accountant, will work on a part-time basis because of other commitments.

An update on the council's finances will be given to councillors at today's strategy and resources meeting.

Alex Hollingsworth, leader of council's Labour group, said: "It's absolutely crucial that we get someone permanent to oversee finances.

"The cost of housing is a substantial problem when it comes to recruiting good staff.

"People know they can get a higher standard of living for the same money elsewhere."

The recruitment crisis has prompted members of the local government union Unison to demand weighting payments, equivalent to those paid in London, to take into account the high cost of living in the south of England. But Green councillor Dr Mike Woodin said this could cost the council £1m extra a year.

Mr Argent will join the council's strategic management team.