Oxford City Council urged to avoid property investments

A council's investments in shops and offices are too risky in the midst of the pandemic and should be stopped, say opposition parties.

The proposed budget for Labour-run Oxford City Council includes £20m for investments.

Oxford's Greens and Lib Dems want money invested in renewable energy instead.

More than £23m is need for public services, with funding earmarked to come from a rise in council tax and profit from the investments.

The opposition groups made their proposals in response to a draft budget published by the Labour group, which has a large majority on the council, reports the Local Democracy Reporting Service.

Head of the Lib Dem opposition group, Andrew Gant, said large-scale investment in commercial property is not "prudent in the current circumstances".

He said: "Instead, we will invest in renewable energy, a tried and tested route in some other councils which delivers a real benefit to our commitment to the environment as well as a financial return."

'Mystery millions'

The Green group suggested the council build its own solar farms, which it says would provide a "modest, but secure" return on investment, and help Oxford meet its growing energy needs from renewables.

It also said car parking and park and ride charges should rise with inflation over the next four years to create a "significant financial cushion".

Green group councillor Craig Simmons said: "We were all ready to give the administration a free pass this year because of the pandemic and the parlous state of council finances as a result of it, but having seen their budget proposals there were certainly things we could not let go without trying to change."

Ed Turner, the city council's finance lead, said both parties were relying on "mystery millions from solar energy schemes".

He said: "Of course we will invest in solar energy if there is a business case for doing so, but there is not even a concrete scheme to evaluate."

Mr Turner added that he was surprised by the proposals to hike car park charges "when businesses and residents are having such a difficult time".

The council is due to make a decision on the budget proposals on Wednesday, 17 February.