City folk are set to face a rise in council tax and increased fees and charges as a council’s finance chief warned of a “diabolical" financial situation.

Homeowners across Oxford could see a council tax hike of almost three per cent in 2024-2025 under Oxford City Council’s newly proposed budget.

It means owners of Band D properties – valued between £68,001 to £88,000 – could pay more than £10 extra a year.

The plans would also see an increase in charges for parking and garden waste collection.

READ MORE: Oxford North developers 'shocked' after fatal incident

Councillor Ed Turner, cabinet member for finance, told the Oxford Mail: “It’s been very challenging to put this budget together. It’s the worst one I can remember. It’s a pretty diabolical situation.”

Independent councillor Shaista Aziz, who left the ruling Labour party in October, said a council tax rise “will come at a difficult time” as Oxford residents battle the cost of living crisis.

The proposed budget for the next financial year will be voted on by councillors next Wednesday (December 13) and will go to consultation if approved.

A final decision will made by full council in February.

The council blamed the increased financial pressures on “unprecedented rises” in costs for temporary housing and energy bills as well as construction costs and interest charges.

While the authority claimed it was not currently at risk of bankruptcy – as has effectively happened in Birmingham and Nottingham – it said a number of significant measures must be taken to stabilise its finances.

In the proposed budget, as well as the Medium Term Financial Strategy, a financial plan from 2025 to 2028, it will look to find further efficiencies of £2m.

Parts of the proposals would see council tax rise in 2024-2025 before falling back to 1.99 per cent until 2028.

READ MORE: Drivers want portable toilets at gridlocked Botley Interchange

Mr Turner said: “In an ideal world, we’d love to have lower council tax.

“But we’re in a position where we are having of millions of pounds of inflation pressures and council tax is going up a long way below inflation.

“We do have a hardship scheme and next year we will have a generous council tax reduction scheme in place.”

Mr Turner said the council had tried to “safeguard front-line services” and would be able to maintain its leisure and parks provision.

But he predicted there would be more “difficult stuff” after 2025, with a review of community services – everything from community grants to leisure and community centres – expected.

He said: “We really care about the community stuff, but it is completely optional.

“It means that if there’s a community building that isn’t well-used, will we look at selling that?”

Chris Smowton, leader of the Liberal Democrat opposition group, blamed the financial situation on the “devastating austerity” of the last 13 years.