Council tax payers in Oxfordshire face a sharp rise in their bills after the Government refused to grant the county council extra cash for next year's budget.

A delegation of county council group leaders and MPs met local government minister Hilary Armstrong last month to plead for a better funding deal.

But deputy Prime Minister John Prescott yesterday said no extra cash would be forthcoming.

The county council, which provides the bulk of local government services in the county, has been told it can spend £360m. The council says it needs at least £380m to maintain services at their current level.

The shortfall means a rise in council tax of about ten per cent, a cut in services, or both. Council chief executive John Harwood said the Government decision was "very disappointing".

Labour group leader Brian Hodgson said the Government must be allowing for a higher-than-average council tax increase, otherwise the county could not meet targets in education and social services.

"We will have to work very hard to protect a budget which makes sure services continue at a reasonable level and that the council tax is not too high," he said.

Story date: Wednesday 03 February

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