Oxfordshire County Council tackles £11.2m budget deficit

In November, the county council suggested proposals to save more than £9.8 million whilst striving to set a balanced budget amidst continued inflationary challenges and growing demands.

However, it was identified in December that the council had a deficit of £11.2 million as central government's grant funding was not as substantial as expected.

To address the shortfall, the council has proposed several strategies.

£3.4 million can be added to the 2024/25 budget on a one-off basis due to district councils collecting more council tax than anticipated.

Furthermore, it's estimated that £1.5 million of funding dedicated to adult social care services will not be needed, so can be reassigned.

Inflation rates went down to 3.9 per cent in November 2023, reducing the anticipated costs for adult social care packages.

As a result, a prior estimation of £2.3 million in funding will now not be needed.

A great relief will come in the form of projected savings in children's services, focused on reducing the reliance on agency staff and avoiding the out-of-county placements for children under council care.

New saving of £1.5 million will be seen through workforce restructuring in 2024/25.

Planning for this restructuring is currently underway.

Despite the challenging circumstances, both the adults' and children's social care budget will still see an increase in investments in 2024, outweighing any savings proposals.

The council's total projected budget for 2024/25 exceeds £614 million, based on a 4.99 per cent council tax increase.

This includes 2 per cent ringfenced for adult social care.

Dan Levy said the council will continue to work hard to review our costs (Image: West Oxfordshire District Council)

Councillor Dan Levy, cabinet member for finance, said: "We did not receive any additional money from government to close what was a £9.1 million gap when we first published our draft budget in late November.

"Quite the opposite."

He critiqued the government’s handling of local authority funding, describing it as "a case of smoke and mirrors".

He stated there was "nothing new" about the announced six and a half percent increase in funding, as it assumed councils would opt for maximum tax rise, and included last year's funding.

He added: "Our track record of responsible financial management means that Oxfordshire County Council has been in a more resilient position than many other authorities.

"However, the overall position is extremely challenging.

"Even now we remain £900,000 short of what we need for a balanced budget.

"Over the coming weeks we will continue to work hard to review our costs and identify further potential measures so we can close the gap and balance the budget.”

The council will make a final decision regarding tax and budget elements on February 20, 2024.