A taskforce has been created to come up with a solution to Oxford's long-term problem of home- lessness.

Members of the organisation include councils, primary care trusts, the police and Oxford Brookes University.

The Liberal Democrat-Green administration agreed earlier this year to cut £1m from the city council's homelessness budget.

The Labour administration, has agreed to maintain the savings.

Council leader Alex Hollingsworth said: "At the moment, we're not aware of a problem with the figures, but we're keeping a close eye on homelessness costs, because they've fluctuated wildly in the past."

The authority wants to use cheaper forms of private, temporary housing to meet the target.

The percentage of council homes allocated to homeless people is also being increased from 50 to 75 per cent.

About 1,200 families or single persons declare themselves homeless in Oxford each year. About 400 are eligible for city council homelessness accommodation and are placed into temporary accommodation. The others are asked to find alternative housing.

The taskforce has said its first priority is to conduct research to gain a better understanding of the extent and causes of homelessness in Oxford. Its other job is to look at how other authorities deal with the issue.

The organisation replaces the Street Scene Task Force, which reduced the number of rough sleepers in Oxford from 50 to nine in recent months.

Val Smith, the executive member for housing, added: "No one is under the illusion that there are easy answers to the problem of long-term homelessness.

"But we are making this a top priority and I know that by working with other groups, we will be able to find solutions."