MAJOR cuts to housing, transport, regeneration and charities in Oxford will threaten the city’s economy, according to city council leader Bob Price.

Senior councillors believe severe measures to slash the country’s deficit have struck a double blow at the heart of the city’s future.

They say funding for projects that will create new jobs and attract future private sector investment has dried up.

And thousands of public sector jobs in the city – at hospitals, councils and universities – are under threat from Government plans to reduce the country’s debts.

The city council has identified £4.4m in cuts and risks to its own funding alone and says that, added to the projected reductions in Oxfordshire County Council’s spending, puts Oxford’s economic future in doubt.

The city council is expecting more bad news in next Tuesday’s emergency Budget from Chancellor George Osbourne and in October’s comprehensive spending review – the Government’s three-year financial projections.

Mr Price said the identified funding cuts badly affected housing projects, such as the planned 1,000-home Barton West development.

The Oxford Mail also exclusively revealed last week that the expansion of Oxford railway station could hit the buffers.

Meanwhile, the Frideswide Square revamp and the regeneration of Oxford’s West End are also under threat.

Mr Price said these were vital components of future economic success for the city and the county.

And he pointed to a recent report by the thinktank Centres for Cities, that revealed while Oxford had lost 6,000 private sector jobs over the past decade, it had benefited from an increase in public sector employment.

He added: “The economic future of the city is being compromised by these cuts.

“The economic dynamism of Oxfordshire is heavily focused on the city and if the city is constrained in its ability to offer places for employment and housing, then the probability is they (people and jobs) won’t relocate to other parts of Oxfordshire. They will go elsewhere.

“It’s the city that creates a sense of economic dynamism, that’s what’s at stake.”

He added: “These cuts don’t allow the city to punch its weight in terms of quality housing and employment sites.”

“It is the multiplier effect you get from significant investment that will be lost.”

The council has budgeted for a 20 per cent cut in Government support over the next three years, but councillors fear that the cuts could rise as high as 33 per cent. Mr Price said: “We have performed very well in terms of cost reductions. We cut a quarter of our costs in the past two years and are planning to cut more.

“We have decided to put all our contingency money to one side.

“Anything which was not spent last year has been put into a contingency fund so there’s a cushion to deal with transition from the current level of spending to what there will be in the future.”

The county council has already outlined a £10.8m cut to its funding in the current financial year, in addition to previously planned savings. It has put its £500m capital spending programme on hold, including school and transport improvements.

Mr Price believes the planned extension of the city’s railway station is unlikely to go ahead and will have a detrimental effect on the city’s ambitions.

He added: “It’s a critical part of making Oxford a viable 21st century city.”

Projects at risk include:

  • Housing: Changes to planning policy by the new Government have left the planned 1,000-home development at the Barton West site, north of the A40 Northern Bypass, as the city’s major hope of combating its housing shortage. But developing the site, and getting the maximum number of affordable homes, is reliant on Government funding via the Homes and Communities Agency, which has put all projects on ice pending new guidance from ministers. Mr Price said: “Moving forward on Barton West will be contingent on some support.” If funding is cut, the council may have to settle for a smaller proportion of social housing on the site.
  • Transport: Plans to expand the railway station and make significant improvements to Oxford’s ring road hang in the balance, as revealed in the Oxford Mail last week. The Access to Oxford initiative promised £88m for major road and rail initiatives. Oxfordshire County Council fears these schemes could become a casualty of Government spending cuts. Senior councillors have made personal pleas to Prime Minister and Witney MP David Cameron in a bid to save the scheme.
  • Regeneration and tourism: Oxford’s West End regeneration project is heavily dependent on government agency funding, all of which has been put on hold. Mr Price said £2.2m of “New Growth Point” money was at risk. In the past, the funding has paid for a variety of projects, including the redevelopment of Bonn Square. Mr Price also believes support for Oxfordshire’s new tourism body will be hit. The destination management organisation has been set up with public and private money, with the specific aim of creating 4,000 new jobs around the county.
  • Deprivation and communities: Mr Price says about £1m earmarked for projects to tackle deprivation in Oxford and Banbury will be lost following a 50 per cent cut to the Local Authority Reward Grant. The county as a whole was expecting £8.5m from the fund but that has been halved to £4.25m. He said: “£1m was going to the city and Banbury, to work with deprived communities on projects related to tackling the cycle of deprivation.” A further £75,000 has been lost for work to promote community cohesion in the city.