COUNTY council leaders in Oxfordshire are considering a lower increase in council tax than first planned, it emerged today.

The council is looking at making £106m worth of budget cuts over the next five years, following a predicted reduction in Government funding.

But councillors at a scrutiny meeting were told by council leader Keith Mitchell the council tax increase was more likely to be between two and three per cent, rather than the 3.75 per cent increase which has been suggested for its share of the bill.

Councillors at the strategy and partnerships scrutiny committee in County Hall today were told a one per cent reduction in the increase amounted to £2.7m of additional funding pressures for the council.

Mr Mitchell said an increase between two to three per cent would be in line with other councils and closer to the rate of inflation.

But he warned the council would have to make cuts in frontline services over the next few years, and added: “There are some tough decisions to be made, and there will be some cuts in frontline services unless we have completely misread the national position. We have 800 properties dotted around the county and we need to have less bricks and mortar in order to maintain the frontline services.”

Savings across council departments are being considered over the next five years including the loss of 500 jobs.

Committee chairman Dr Peter Skolar said: “We must protect our statutory and corporate services.

“It’s easy to cut the corporate core services, but if you do that the whole council grinds to a halt.”

All council scrutiny committees will now make recommendations to the cabinet before it agrees its budget in January. The budget will not be passed until all councillors meet in February. The county charge makes up the largest part of a council tax bill.