Oxford anticipates over £1M loss due to a national insurance tax increase failing proper compensation.
This tax increase impacts councils everywhere. Oxford received £300,000 to help cover it. However, Oxford City Council expects to pay £800,000 more, and Oxford Direct Services needs an extra £600,000 too.
A council member, Ed Turner, felt let down by the compensation. However, he stated other government money helps, even though he also knows the government’s budget is tight now.
Another council member, Chris Smowton, is concerned. He said about £1 million is going from the city to the government and thinks they should loudly protest this situation. He feels money moves the wrong direction.
Smowton noted cuts to community services last year. Proper compensation could have fixed those cuts. The government has given some funds for homelessness and also gave money for producer responsibility.
Turner mentioned getting more help in some areas, which he says made up for losses in other areas. He thinks they’d be worse off otherwise. The government acknowledged some councils will struggle and that the national insurance increase affects them. Jim McMahon says the help isn’t perfect, because tax increases offset other money for local spots.