COUNCILLORS are currently locked in discussions in a bid to reach an agreement on Oxford City Council’s next budget.

Talks began minutes after the ruling Labour Party’s budget proposal was rejected by 24 votes to 23 in the Town Hall’s council chamber tonight.

Amendments proposed by the Liberal Democrats and the Green Party also fell at the meeting.

Party leaders Bob Price (Labour), Stephen Brown (Lib Dem) and Craig Simmons (Green) are trying to thrash out a compromise budget for the next financial year.

The three parties had reached a consensus over a proposed council tax rise of two per cent for the city, but failed to agree on other issues, such as the future of public toilets, youth spending and how to use a £2.3m Government grant.

The Independent Working Class Association, which has two councillors, did not submit a budget.

Labour Deputy Leader Ed Turner told the meeting it had been “a difficult time” for Oxford’s finances.

He said: “We need to get a firm grip on the council’s budget for the benefit of those who need it most; the city’s most disadvantaged residents.”

Mr Brown claimed the Labour budget proposal was similar to previous ones submitted by the Lib Dems.

He said: “If you look back at what we argued for last year it is with some considerable satisfaction that we see the administration have taken up some of our points, including keeping council tax at two per cent.”

Mr Simmons added: “Ed Turner talks about the pleasure he has in revealing this budget but I can’t see how that is the case, it is basically £2million worth of cuts.

A compromise is expected to be reached between 9pm and 10pm.