CITY council leaders in Oxford are expected to decide tonight on a budget which could include millions of pounds worth of cuts.

The ruling Liberal Democrat administration is proposing a two per cent rise in council tax, while the Labour group and the Green group are both proposing a four per cent increase.

The Liberal Democrat budget could go through with the help of Green councillors, but if power shifts to the Labour group in May, a series of changes would be made to the Lib Dems' spending plans.

City council leader John Goddard said: "How it will pan out, frankly not one of us knows - I do not control 48 votes in council."

Ed Turner, deputy leader of the Labour group, said a number of proposed Lib Dem cuts would hit "the vulnerable", including a £100,000 reduction on street wardens and police community support officers.

Mr Turner said Labour would be putting forward a balanced budget, which included the £3.5m savings but also a number of alternative proposals.

He said: "When times are hard, you need the council to be run properly or the cuts will hit the most vulnerable.

"We are also opposed to the £40,000 saving proposed by the Lib Dems on planting in the city which would effectively kill off the Oxford in Bloom competition."

Labour group leader Bob Price added: "I don't think the Lib Dems can afford to keep the council tax as low as two per cent - it's gesture politics."

Liberal Democrat city councillor David Rundle said the budget-setting process was "very difficult" in the light of the worst Local Government Settlement from the Government in recent years.

The Green group wants to raise all city car park charges by a further one per cent and sell the famous FC1 number plate from the Lord Mayor's limousine for £100,000. The party also wants to scrap the £25 charge for blue wheelie bins and spend an extra £50,000 on street cleaning.

Green group leader Craig Simmons said: "It is irresponsible to keep council tax below the rate of inflation.

"The council is in dire financial straits this year and next year, so everything needs to be focused on making sure basic service levels are delivered for the people of Oxford."

Thames Valley Police Authority has increased its share of the council tax bill by four per cent for the coming year.

And last week, Oxfordshire County Council approved a 3.8 per cent rise in its share of this year's bill.

The city council meeting at the Town Hall in St Aldate's starts at 5pm.