Council's funding gap grows by £2.1m amid government row

Councillor Dan Levy said the council had not been given "any additional money" by central government

A council says it needs to find another £2.1m following the government's annual allocation of money to local authorities in England for the next financial year.

Oxfordshire County Council had already announcd in November a £9.1m shortfall but that has now grown to £11.2m.

Councillor Dan Levy, member for finance, expressed "deep disappointment" with what he called "smoke and mirrors" relating to a provisional plan to give councils an extra 6.5% of funding.

A spokesperson for the Department for Levelling Up, Housing & Communities (DLUHC) said it had announced a £64bn funding package for councils but added local authorities were "ultimately responsible for their own finances".

Oxfordshire County Council already had a budget shortfall of £9.1m

Like lots of councils, Oxfordshire is grappling with high inflation leading to increased prices for energy, fuel, materials and staff.

Mr Levy said the government had "spoken widely about a 6.5% increase of funding to local government".

"Sadly, this is a case of smoke and mirrors," he said.

"This increase assumes councils take the maximum council tax rise and includes funding announced this time last year. There is nothing new in this sum at all."

The DLUHC spokesperson said they "recognise [councils] are facing challenges" and they were "ready to talk to any concerned about its financial position".

Mr Levy said the council had a "track record of responsible financial management" that put it "in a more resilient position than many other authorities".

But he added the "overall position is extremely challenging" and said they would need to take "really tough decisions" as a result of the shortfall.

The council's Performance Scrutiny Committee will be updated on the financial position on 19 January, and a new draft budget will be presented to cabinet on 30 January.