Following the central government’s annual allocation of funding to local councils, Oxfordshire’s projected £9.1 million budget shortfall has grown to £11.2 million for the 2024/25 financial year after the county did not receive as much grant support funding as expected.
Oxfordshire County Council’s Cabinet Member for Finance, Councillor Dan Levy, said in a statement: “The government has spoken widely about a 6.5% increase of funding to local government. Sadly, this is a case of smoke and mirrors…Local government as a whole has expressed its deep disappointment. We are clearly now going to have to take some really tough decisions.”
Levy said that the local government already feels “great concern” about the upcoming year’s finances and the government’s allocations “did nothing to alleviate those concerns.”
Previously, in November, the county published the first draft of its budget proposals, anticipating a shortfall of £9.1 million due to inflation falling slower than forecasted whilst costs continue to rise.
According to a press release, the county faces “demand-led pressures and the effects of the growing nationwide costs of supporting children and young people; the rising cost of social care and care placements for both children and adults; and a national shortage of social care workers leading to a reliance on agency staff and higher costs.” Oxfordshire’s growing and ageing population adds to this pressure.
The overall projected budget for the next financial year is over £614 million. It was drafted based on consultations with residents and a council tax rise of 4.99% – less than the current rate of inflation – with two percent of this increase being ringfenced for adult social care. The changes are expected to save £9.8 million but are insufficient to cover the council’s growing deficit.
The council continues to work on balancing its budget and will come to a final decision on 20 February.
