Oxford City Council debt rises by almost £70 million in a year
The city council’s debt increased by just under a third, totalling £288,528,000 at the end of 2024.
Last updated 26th Aug 2025
The amount of debt amassed by Oxford City Council has risen by almost £70 million in the space of a year.
The city council’s debt increased by just under a third, totalling £288,528,000 at the end of 2024.
This amounts to £1,746.71 worth of debt per person, an increase of £423.16 per person from last year.
It’s also the highest increase in debt in the county, with Oxfordshire County Council and Cherwell District Council’s debt falling by 8.84 per cent and 4.4 per cent respectively.
The city council said that the increase in borrowing is planned and is part of its investment in new and existing social housing.
They are the only council in Oxfordshire who manage and own its own social housing.
A spokesperson said: “As part of a government policy change some years ago, the council was required to take on a significant amount of debt in return for keeping all rental income.
“Unlike neighbouring authorities, Oxford City Council continues to hold council housing stock, which requires ongoing investment to ensure homes remain safe, modern and energy efficient.
“This is the main reason Oxford’s borrowing has increased, while other councils without housing responsibilities are seeing their debt levels fall.”
Councillor Ed Turner, cabinet member for finance and asset management, said: “Oxford City Council’s borrowing is planned and responsible, allowing us to invest in council housing and build new homes for our residents.
“Unlike neighbouring district councils, we continue to own and manage housing stock (rather than having transferred it to a housing association).
“This means our debt is higher (but so too is our income, as we receive property rents), and it requires ongoing investment, but we only borrow where there is a secure income stream.
“We believe councils should be properly funded to meet their duties, and we would welcome greater government support to help us deliver for our communities.”
Oxford City Council overtook Oxfordshire County Council on its total debt this year, with the county council having £271,883,000 in debt.
Cherwell District Council has £165 million in debt.
West Oxfordshire, South Oxfordshire and Vale of White Horse District Council were part of the 32 councils that had no debt at the end of 2024/25.
UK councils owe a combined £122.2 billion to lenders, equivalent to £1,791 per resident, as of April 2025, according to analysis of data from the Ministry of Housing, Communities and Local Government.
Surrey County Council had the largest increase in debt in the last year at £346 million, while the bankrupt Birmingham City Council had the largest overall debt at £3.3 billion.
Jonathan Carr-West of the Local Government Information Unit (LGIU) said the level of debt held by local authorities was “extremely worrying”.
He said: “That is not a sustainable system. As one local government finance officer said to me, it’s essentially payday loans for local governments.
“I don’t think the government would say that’s it’s long-term ambition.
“They would say that is what we have had to do to paper over the cracks while we introduce a new funding system for local government.”