Budget Consultation 2025-26

Overview

Oxford City Council spends around £100 million each year providing public services that you, your family and friends use every day.  In addition, we spend another £57 m on council housing in relation to the management and maintenance of our 7,869 council homes and we are planning to spend around £800 million over the next 5 years on major infrastructure capital projects in the city. We want to hear from you on our budget proposals for 2025-26.

The financial environment for local authorities continues to be challenging. Government general grant has been reduced significantly over the years from its previous high of around £6 million to almost zero now. The Government’s Budget announcement on 30^th October 2024 did not give details on major areas of local authority income, such as business rates, New Homes Bonus and other specific revenue grants and further details will not become available until the ‘Provisional Finance Settlement’, which is expected on 19^th December. We believe that the amount we will receive will not be enough to maintain all services at the level that we would like them to be over the medium term.

In the face of this dilemma the Council has sought alternative income streams to maintain funding for our services. We have established wholly owned companies who are forecast to deliver around £19 million over the 4 year period, and we continue to generate income from fees and charges from car parks, commercial property rentals, investment interest and other income. These income streams account for around 59% of our total funding.

Despite these income streams our costs continue to increase. Temporary accommodation costs for homeless families are expected to increase by around £1.8 million per annum and there are other increases from ICT software licenses, property repairs and the net cost of housing benefit which costs the authority almost £1 million per annum. The Council has had to use its reserves to bridge gaps in its finances over the last few years and further use of reserves remains part of the Budget Strategy with a further £5 million to be used over the coming years. Other measures we propose to bridge the budget gap include:

• Continue to support our wholly owned companies, OX Place and Oxford Direct Services in delivery of houses and front-line services.
• Making a further £5 million of efficiencies and transformation savings
• Increased income from fees and charges and commercial property by £8 million annually with effect from 2028-29.
• Maximising the use of our assets, disposing of those that do not meet our strategic need and investing in those that re-generate the city centre and deliver financial return.
• Making cuts to discretionary services. Sadly, in some area these have been necessary.    

The draft budget proposes a

• Council Tax rise of 2.99% for the next financial year from April 2025, an increase of £10.36 per year, or 20 pence per week, for the average band D household.
• Rent rises for our council houses tenants of 2.7% or £3.51 per week.

We would like to hear your views on our draft budget and get a deeper understanding of your priorities, needs and aspirations in relation to our services and your community.

Why your views matter

Participating in the Oxford Budget Consultation is a valuable opportunity for you to directly influence decisions that affect the future of our community. Here’s why your involvement matters:

Shape the Future of Our Community, Ensure Fairness and Equity, Have Your Voice Heard, Improve Public Services and Infrastructure. Strengthen Community Engagement, Stay Informed and Empowered!

Taking part in our Budget Consultation gives you the chance to influence how public funds are spent on our services like leisure facilities and housing. Your input ensures that the needs of all community members, especially vulnerable groups, are considered. It’s an opportunity to have your voice heard, advocate for improvements in public services and infrastructure, and help create a fairer, more equitable budget for everyone.

Your participation strengthens community engagement and keeps you informed about how decisions are made at Oxford City Council.