Council Tax in Oxfordshire set to rise nearly 5% annually
The county council warns of 'major budget challenges' following government funding cuts
Households in Oxfordshire face annual Council Tax rises of 4.99% for the next three years as the county council addresses budget challenges from government funding cuts.
These increases have been factored into the government’s formula for distributing grants to councils, leaving Oxfordshire County Council with an expected £24.1 million reduction in funding by 2028/29.
Councillor Dan Levy, Cabinet Member for Property, Finance and Transformation, explained how government funding changes have impacted local finances:
“The government has cut grant funding and assumed the council will make up the difference with maximum Council Tax rises.
"The effect of this is that we will have to put up Council Tax by 4.99% each year, but a lot of this money will immediately be subtracted by the government and sent elsewhere. This is both financially difficult and hard to square with local accountability and choice.”
The council has outlined a £5.4 million deficit for 2026/27, rising to £14 million in 2027/28.
Plans to cover the gaps include drawing from reserve funds, revising pay inflation forecasts, and increasing savings in services by £1.5 million in 2026/27.
Cllr Levy acknowledged the difficulties posed by these measures:
“While we respect the government’s desire to put extra money into areas of the country that have higher levels of deprivation, we do not think this should be at the expense of Oxfordshire and its residents. Many partner councils in local government face similar challenges, but the scale of cuts here is stark.”
Despite the financial strain, the council has planned some investments for the coming years, including:
- £4 million for improved drainage systems to help reduce flooding risk.
- £150,000 for Phase 1 of the Wantage Market Place project to improve accessibility.
- Upgrades to local libraries, including £360,000 for Wantage Library, £250,000 for Goring Library (rising to £750,000 by 2027/28), and £550,000 for Didcot Library.
- £14 million is set to support adult social care services, and £19 million will be used for children’s social care and education, including new activity linked to the government’s Families First Partnership.
- £400,000 to sustain the Park & Ride ticketing deal and £320,000 to maintain real-time passenger information boards at bus stops.
Savings beyond 2026/27 may involve challenging service adjustments, given the increasing proportion of the council’s budget allocated to adult and children’s social care.
Councillors will finalise the budget and tax increases on 10th February 2026.