Oxfordshire council warns of 'tough choices' in next budget

The council blamed the figure on factors such as inflation and the cost of supporting children and young people with special educational needs and disabilities (SEND).

It comes before a meeting next Thursday (October 19) when the cabinet will agree its approach to setting the 2024/25 budget.

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Councillor Dan Levy, the council’s finance chief, said there will be tough choices (Image: West Oxfordshire District Council)

Councillor Dan Levy, cabinet member for finance, said: “We know that people across our county are still facing huge financial challenges as we move into winter.

“Prices are continuing to rise and it is still legitimate to say we are in a cost of living crisis. The county council also continues to face major budget pressures.

“As a council, we are on the frontline of supporting the most vulnerable people in our communities. We are committed to them and their families.

“However, as the cost of doing this rises and our funding fails to keep pace, we are left facing tough choices.”

The council blamed the financial pressures on a number of factors.

This included increases in inflation driving up costs, price increases in energy, fuel and materials, the “high demand pressures” supporting SEND children, and a reduction in government funding over the last decade.

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Mr Miller said: “Each year the council goes through this initial process of identifying new pressures on budgets and the £30 - £40m figure is where we stand at the beginning of the process this year.

“We will manage the council’s finances responsibly and we are planning ahead carefully to meet current and future financial challenges.

“We will engage with residents about the big issues that matter most to them and their communities.

“We encourage residents to take part in budget engagement activities this winter. We will use this feedback to help us shape our budget proposals for next year.”

At next week’s meeting, the council’s cabinet will review a report that outlines the process for developing and agreeing the budget for 2024/25 and the assumptions on which the council’s existing medium-term financial strategy (MTFS), agreed in February 2023, is based.

The MTFS is based on a 4.99 per cent council tax rise in 2024/25 with two per cent of this being ringfenced for adult social care. This rise would be less than the rate of inflation.

In late November, the council will publish the detail of its budget proposals for 2024/25.

The proposals will be considered by the performance and corporate services overview and scrutiny committee during December.

The committee’s feedback, alongside the results from the 2023 residents’ survey and wider  budget engagement,  will be reported to the council’s cabinet in January before the budget is set at a meeting with all county councillors on 20 February 2024.