Cash-strapped Oxford City Council is today expected to set a council tax increase of 9.5 per cent.

At a strategy and resources committee at the town hall today, the ruling administration of Liberal Democrat and Green councillors was planning to agree the increase.

Labour councillors are opposed to such a large increase and will propose their own budget next week.

This increase will be added to the amount set by the county council, parish councils and the Thames Valley Police Authority.

Cllr Corinna Redman said: "We want to agree a council tax increase of 9.5 per cent. That is built into our budget proposals and will be the first item on the agenda."

Last week, Liberal Democrat and Green councillors agreed £1.7m worth of cuts, including 30 job losses, mainly in the leisure services department.

They have already agreed £2m worth of cuts and the 9.5 per cent increase is up on last year's four per cent increase.

Councillors also agreed to put up parking charges at park and ride sites from 50p to £1, although county council bosses, who are not in favour of the move, will have to be consulted.