Council taxpayers might have to help fill a £27m black hole in Cherwell District Council's pension fund caused by a "stealth tax" by Gordon Brown, a Tory councillor claimed.
The Chancellor of the Exchequer's tax on pension funds is causing difficulties for the council's fund, according to Bicester councillor Douglas Spencer, chairman of the resources committee.
He told colleagues that the council's pension fund had a growing "black hole" much like those in the private sector.
Mr Spencer added: "This black hole is a direct result of Chancellor Gordon Brown's stealth tax on pension funds."
He warned that Cherwell residents might face another rise in council tax bills as a result.
Mr Spencer said the council's pension fund was facing a £14m shortfall this financial year.
By April it was projected that the figure would have risen to £27m. Cherwell and other district council's belong to the Oxfordshire County Council pension fund, but each council's part is treated separately.
Part of the shortfall is the result of falls on the Stock Market, but Mr Spencer said the pension fund tax had also contributed.
Mr Spencer said: "The shortfall cannot be made up by increasing employees' contributions. It can be made up by increasing the employers' contributions and also through the council tax."
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