OXFORD City Council has agreed to raise council tax by two per cent following a drawn out budget meeting.

A range of community schemes also received cash boosts after the Labour and Liberal Democrat groups thrashed out a deal at the Town Hall tonight.

Labour, the ruling party, saw its original budget proposal rejected by 24 votes to 23, meaning it was forced to compromise with the opposition.

Schemes set to receive funding include Jericho Conservation Area, which will get £50,000, Littlemore Summer Playscheme, which will get £30,000 over two years, and the Rose Hill and Iffley Play site, which will receive £75,000.

Fuel poverty grants received a £50,000 boost and the Wood Farm Community Building Project was awarded £125,000.

Labour leader Bob Price and Lib Dem leader Stephen Brown were locked in talks for about 90 minutes after Labour’s original proposal was rejected.

Councillors from both parties voted unanimously for the new budget after the talks.

Green Party councillors were not invited to the negotiations after Labour representatives declined to speak with them.

Labour deputy leader Ed Turner said the final budget was “99 per cent Labour”, although he said funding for fuel poverty, Wolvercote public toilets, a Police Community Support Officer and community grants came from the Lib Dem proposals.

Speaking after the meeting Mr Turner said: “It is a very difficult time for the council. But we are delighted to be investing in play areas, youth provision and youth sport.

“We will make full use of tough new powers to tackle bad landlords and we will do all we can to help the most vulnerable people in Oxford.”

He added: “The Green budget was laugh a minute and full of nonsense like raising car park charges again, and we felt it was too far detached from what we were doing.”

Speaking at the meeting Mr Brown said: “I really want to make it plain that we were happy to involve the Green Party and the Independent Working Class Association in our discussions but Labour twice declined our request.”

Green party leader Craig Simmons said: “I am glad that the two main parties enjoyed a nice love in even though we are well past Valentine’s Day. I have to say this is a dog’s dinner of a budget which is a real shame as it could have been much better.”

IWCA leader Stuart Craft told the meeting: “I am glad we didn’t waste the time to put forward a budget because you don’t listen to reason. You are only interested in pushing your own agenda.”