Local councils are the backbone of essential services — from roads and rubbish collection to adult social care. So when their finances start to show signs of strain or mismanagement, it’s not just an accounting issue — it directly affects taxpayers like you and me.
Oxford resident and accountant Will Nicholas, in his research into local authority financial transparency, recently took a deep dive into Oxfordshire County Council’s publicly available financial data, and what he found raises serious questions about accountability, transparency, and long-term sustainability.
Key Trends, Red Flags, and What They Might Mean for Your Wallet
1. Missed Deadlines and a Worrying Audit Opinion
The council has repeatedly missed deadlines for publishing its annual accounts. The 2023/24 accounts were a month late, and the 2022/23 audit still isn’t signed off — a whole two years after the year ended. Even worse, the auditors issued a Qualified Opinion, meaning they couldn’t fully verify the figures.
Why it matters: When auditors can’t verify the accounts, it signals serious issues in financial controls or record-keeping. That undermines public confidence and could lead to wasteful or improper spending going unnoticed.
2. Big Spending with Little Explanation
- £1.5 million spent on a vague “transformation programme”
- £1.4 million in ‘exit’ payments in 2022/23 and another £700k in 2023/24 — 71% of these were discretionary
- A 30% drop in pension liabilities, freeing up £700k — likely actuarial, but unexplained
Why it matters: If large sums are being spent without clear justification, it raises serious concerns about oversight and financial priorities. Discretionary exit payments, in particular, mean taxpayers may be funding overly generous golden handshakes.
3. High Salaries at the Top
- CEO earning £280,000 in 2023/24
- 28 staff earning over £100,000
- Directors regularly exceeding £180,000+
Why it matters: While councils need skilled leadership, these figures are difficult to justify alongside financial delays and audit concerns. Taxpayers deserve to see value for money.
4. Reserves Raided, Debt Rising
- Reserves steadily declining from 2021–2024
- Unpaid debts up to £6 million in 2023/24
- £11 million in long-term debt and a £5 million overdraft
- Investment portfolio growing (from £35m to £44.5m), raising risk questions
Why it matters: Using reserves to plug budget gaps isn’t sustainable. Growing debt combined with risky investment strategies could lead to major financial trouble down the line.
5. Skewed Priorities and Lack of Transparency
- Spending includes £1.6m on a 20mph plan and £1.4m on road safety schemes
- Over £8.6m on zero-emission buses (grant-funded)
- Yet more than 50% of the budget goes to adult social care — and this gets little attention in council meetings
To make matters worse, some audit reports aren’t even publicly accessible on the website. Broken links force residents to dig through old meeting minutes just to find the right documents.
Why it matters: Transparency and clarity are essential for democratic accountability. Prioritising pet projects while burying financial reports undermines trust and creates confusion for taxpayers.
What Does This Mean for You as a Taxpayer?
When financial management breaks down, it’s not just a behind-the-scenes issue. It could lead to:
- Higher council tax bills to cover growing debts or depleted reserves
- Cuts to vital services like elderly care or infrastructure maintenance
- Reduced trust in local governance, making it harder to hold officials accountable
If these trends continue unchecked, residents could be left with declining service quality and rising costs.
What Needs to Change?
- Stronger financial governance – Audits must be completed and published on time.
- Greater transparency – Spending must be clear and justified.
- Accountability on senior pay and exit packages – Excess spending should be explained or reined in.
- A focus on financial sustainability – Using reserves to cover recurring costs is not a long-term solution.
Final Thoughts
Council finances might seem dry or technical — but they’re a powerful reflection of how our money is managed. And in this case, the signs point to a system that’s off course and in need of serious attention.
As a taxpayer, don’t tune this out. If you’re paying council tax — you should be paying attention.
Importantly, Oxfordshire residents have a direct opportunity to demand better. On May 1st, voters can choose new local councillors — and with that, help shape the priorities, transparency, and financial discipline of the next council leadership.
If you’re concerned about how your money is being spent, make your voice heard at the ballot box.