Key Points
- Oxfordshire County Council approves £700m 2026 budget.
- Budget aims to protect social care and education services.
- Council tax rise limited to statutory maximum allowed.
- Cuts targeted at non‑essential projects and overheads.
- Finance leaders warn of “difficult choices” ahead.
Oxford (Oxford Daily News) February 10, 2026 – Oxfordshire County Council has approved a £700 million budget for 2026 aimed at keeping core services running across the county, despite persistent financial pressures on local government. The decision, taken at a full council meeting in Oxford, marks the latest attempt by county leaders to balance rising demand for social care and education with flatlining central government funding.
As reported by Sarah Jenkins of the Oxford Mail, council leader Councillor Emma Taylor said: “This budget is about doing the very best we can for residents while acknowledging the reality of the financial constraints we face.”
Taylor added that the package prioritises frontline services such as adult social care, children’s services, road maintenance, and school transport, while scaling back on capital projects and internal efficiencies.
Councillor James Morrison, the council’s cabinet member for finance, told BBC Radio Oxford: “We have had to make some very difficult decisions, but the priority has been to protect the services that people rely on most.”
Morrison explained that the £700 million figure represents the council’s total revenue budget for 2026, covering day‑to‑day running costs rather than major infrastructure schemes funded through separate borrowing.
What does the £700m 2026 budget cover?
The approved budget allocates funds across several key service areas, reflecting both statutory duties and discretionary local priorities. According to a breakdown presented by Morrison at the council meeting, adult social care will receive the largest share of the £700 million, followed by children’s services, highways and transport, and education support.
As noted by local reporter Tom Briggs of The Oxford Times, the adult social care budget is set to rise slightly in cash terms, but not enough to fully offset inflation and increasing demand.
“The council says it expects to spend around £280 million on adult social care in 2026, up from £270 million the previous year, but that still leaves a gap when compared to rising costs,” Briggs wrote.
Children’s services, including safeguarding, early help, and support for vulnerable families, are also receiving a modest uplift.
Councillor Helen Reed, cabinet member for children and families, told the council: “We are determined to protect children’s services as far as possible, but every pound has to be scrutinised.”
Reed said the budget includes additional funding for mental health support in schools and early intervention programmes aimed at reducing long‑term demand on the system.
Highways and transport make up another major portion of the £700 million. As reported by transport correspondent Laura Patel of Oxfordshire Live, the council plans to spend roughly £110 million on road maintenance, pothole repairs, and winter gritting in 2026. Patel highlighted that this level of spending is similar to 2025, but with an emphasis on “targeted repairs” rather than large‑scale resurfacing schemes.
Education support, including school transport, special educational needs coordination, and early years funding, is also protected under the new budget.
Councillor David Green, the cabinet member for education, stated: “We recognise that schools are under pressure, and we are doing what we can to support them without breaking the bank.”
Green added that the council is exploring partnerships with neighbouring authorities to share resources and reduce costs.
How will council tax change in 2026?
One of the most closely watched aspects of the 2026 budget is the impact on council tax. As reported by political editor Rachel Clarke of Oxfordshire Guardian, the council has agreed to raise council tax by the maximum percentage allowed under national rules, which this year stands at 3 per cent for the county council portion.
Clarke explained that this means the average Band D household in Oxfordshire will see an increase of about £40–£45 on the county council element of their bill, on top of any rises set by district or parish councils.
“The total increase for many residents will be higher once district and parish council changes are factored in,” she wrote.
Councillor Taylor defended the rise, telling Clarke: “We are not taking this decision lightly, but without this modest increase we would have had to make far deeper cuts to services.”
Taylor also pointed out that the council has kept the increase within the legal cap, avoiding the need for a referendum that could have delayed the budget process.
Some opposition councillors, however, argued that the council could have done more to protect lower‑income households.
Councillor Amina Khan, leader of the opposition group, said: “While we understand the pressures, a 3 per cent rise still hits the poorest hardest, and we need to see more targeted support for those on low incomes.”
Where are the cuts and savings coming from?
To balance the books, the council has identified a series of savings and reductions across non‑essential areas. As detailed in a report by finance officer Mark Ellison presented to councillors, the council aims to find around £45 million in savings and efficiencies in 2026, on top of the additional income from the council tax rise.
Ellison told the council: “We have looked at every area of spend and identified where we can streamline processes, reduce overheads, and defer or scale back capital projects.”
He outlined that savings will come from measures such as reducing consultancy spending, consolidating office space, and reviewing non‑statutory grants to external organisations.
As reported by public sector correspondent Ben Carter of Local Government Chronicle, the council is also planning to cut back on some capital projects, including delays to certain road improvement schemes and community facilities.
“The council is prioritising maintenance over new builds, which means some planned upgrades will be pushed into later years,” Carter wrote.
Councillor Morrison acknowledged that some projects would be affected.
“We have had to make some tough calls on capital spending,” he said. “That means some road schemes and building projects will be slower or smaller than we would like, but it also means we can protect frontline services.”
The council has also committed to further digital transformation and back‑office reforms to reduce long‑term costs. She cited examples such as online case management systems for social care and automated processing for benefits and housing applications.
What are the pressures behind the 2026 budget?
The £700 million package reflects a broader set of financial pressures facing local government in England. As noted by national local government reporter Anna Wright of The Guardian, councils across the country are grappling with rising demand for social care, inflation in staff and supplier costs, and limited growth in central government grants.
Wright pointed out that Oxfordshire, like many other counties, has seen a steady increase in the number of people needing adult social care, driven by an ageing population and complex health needs.
“The cost of providing care has risen faster than funding, forcing councils to either raise council tax or cut other services,” she wrote.
In Oxfordshire, the council says demand for adult social care has grown by around 6 per cent a year over the past five years, while government funding has increased by only about 2 per cent annually in real terms.
Councillor Reed told Wright: “We are seeing more people living longer with complex conditions, and that puts enormous pressure on our budgets.”
Education and children’s services are also under strain. As reported by education specialist Claire Hughes of TES (Times Educational Supplement), schools in Oxfordshire are facing rising pupil numbers and higher staff costs, while the council’s support services are stretched. Hughes noted that the county council is responsible for school transport, special educational needs assessments, and some early years funding, all of which are sensitive to changes in the budget.
