Thursday 10th January 2008

Oxfordshire County Council Conservatives

Conservatives call foul over Government funding

At today’s meeting of the County Council (8 January), Conservative councillors attacked the way the government had effectively imposed a cut on the Council of £6.5 million over the next three years in relation to transport schemes.

Before Christmas Oxfordshire’s press had reported that the Council was to receive £63 million of government money over three years to help fund transport schemes. What was not reported was that this amount is now to be made up partly of grant and partly of permission to borrow. The borrowing element amounts to £6.5 million.

Like many county councils in the South East, Oxfordshire County Council is categorised by the government as a “floor” authority. This means it receives only the minimum financial settlement.

The government is not, therefore, prepared to support the debt repayments and interest on the £6.5 million additional borrowing. The interest and the repayment of the capital would fall on the Oxfordshire council tax payer for years to come.

Councillors are unwilling to add the repayment costs of this debt to the council tax. It therefore amounts to an effective cut of £6.5 million in our budget.

Councillor Ian Hudspeth, Oxfordshire County Council's Cabinet Member for Transport, said:

"The Government is using smoke and mirrors to hide the fact that it is trying to pass another cost on to the taxpayers of Oxfordshire.

"Their refusal to support the £6.5million borrowing means that schemes across the county may lose out as a result of this underhand way of funding councils like us.

“It must be remembered that this comes on top of Whitehall's refusal to fund our flood-damaged roads. The question needs to be asked as to whether the Government is serious about funding road improvements?”