Council chiefs have acted on traders’ concerns and withdrawn funding from “ineffective” city centre management company OX1.

The move follows an unsuccessful attempt to turn Oxford City Centre into a business improvement district, which was backed by less than half of the 365 businesses that voted.

From April 1, Oxford City Council and Oxfordshire County Council will redirect £105,000 — 90 per cent of the not-for-profit company’s funding — to pay for a new senior city centre manager employed by the two councils.

The move places fresh doubt on the future of OX1 chief executive Oliver O’Dell.

City council leader Bob Price said: “We want to take full responsibility for the management of the city centre.

“The business community was quite divided as to OX1’s role and effectiveness. There were people who thought OX1 was not the right way of doing it and that was the decision we have come to as well.”

Mr Price said consultation with traders revealed a perception that OX1 was “ineffective” and he believed someone employed by the council would be better placed to keep on top of “basic elements” such as street cleaning, street furniture and public order.

But he said the two authorities were keen for OX1 to continue in some form to speak for city centre businesses and be involved with promotion and marketing.

The new post will be advertised in the new year and Mr Price said that Mr O’Dell coul apply for the position.

Mr O’Dell, who was appointed chief executive in May 2007, said: “OX1 is disappointed by the decision made by the two councils and will spend some time looking at what the opportunities are for it to operate in the future.”

He said he remained committed to the city centre businesses and hoped to continue working with them in some form, but would not answer any questions or make further comment.

Traders sounded a note of caution in response to the announcement.

Andrew Hill, manager of Covered Market jeweller John Gowing, said: “I think the proof of the pudding will be in the eating.

“OX1 did some good things in terms of promotions for the city, but it is difficult to gauge how effective they were.

fbardsley@oxfordmail.co.uk