Labour councillors are warning that plans to disperse homeless youngsters across Oxford will lead to high costs and poor services.

Two Oxford City Council committees housing and strategy and resources have voted to go ahead with a "dispersed" Foyer scheme, despite strong objections from the Labour group.

The committee axed an alternative scheme, which involved setting up a large complex to accommodate homeless youths, in one purpose-built building next to the Oxford College of Further Education in Abbey Place.

The complex was also meant to house a one-stop advice shop and training and education opportunities. Labour councillors attacked the dispersal scheme favoured by the Liberal Democrats and Greens.

Carole Roberts, Labour group housing spokesman, said: "The decision to acquire a scattering of properties across the city will not provide the sort of support needed for a Foyer project."

Officers told the housing committee that the dispersal scheme would cost at least as much as the other plan.

But Liberal Democrat David Connett defended the decision saying it meant the project could be up and running sooner. He said the other plan would have set the project back by five to seven years.