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Tax rise likely as council faces £2m shortfall

From the archive, first published Monday 4th Aug 2003.

West Oxfordshire district councillors have pledged to do their best to prevent a massive leap in council tax as they face an annual shortfall of £2m.

In previous years, the council has managed to keep tax low because of income from its financial investments -- now standing at about £63m -- but the yield has reduced because interest rates are low.

It has also spent money on leisure centres in Chipping Norton and Carterton as well as new council offices.

The pledge on tax came after finance director Vic Allison warned councillors that the shortfall between income and expenditure is about £2m, and said the district's share of council tax could have to triple in five years.

The average Band D householder currently paying £60 could face the prospect of a £180 bill by 2008-9.

Council leader Barry Norton said: "Nothing is set in stone. I don't think council tax will increase anywhere near as much as triple.

"We're looking to make savings across the board and there are so many imponderables. We're having to look at a five-year plan on what we know today, when in reality lots of things will affect it in the medium term.

"We're being affected by external events beyond our control. I cannot remember in all my time in local government so much being imposed on us by the Government.

"At the end of the day, we have to balance the books."

He said taking on responsibility for licensing matters from magistrates from April would add to the council's costs. It also wants to improve public toilets and expand recycling schemes.