A FRESH hike in council tax bills was branded “unreasonable” by an advice centre for people with financial difficulties.

Councillors agreed to raise Oxford City Council’s share of council tax by two per cent after drawn-out budget talks last night.

But while community groups have spoken of their delight at being handed hundreds of thousands of pounds as part of the budget, the above average rise in council tax was criticised by Jim Saunders, manager of the Agnes Smith advice centre in Blackbird Leys.

Mr Saunders said: “It is completely unreasonable and will hit the poorest people hardest.

“The vast majority of people who come here for help have severe financial difficulties which often stem from an inability to pay their council tax.

“This rise will not make much difference to wealthier people, but less well-off residents will definitely feel the pinch.”

Labour and the Liberal Democrats thrashed out the compromise budget at the Town Hall after the ruling Labour group saw its original budget rejected by 24 votes to 23.

The council’s share of council tax will rise by two per cent from April, meaning a typical Band D homeowner in Oxford will pay the authority £5.22 more a year.

The rise will be added to the Oxfordshire County Council and Thames Valley Police precepts, and Band D council taxpayers in Oxford will see an overall increase of 2.55 per cent to £1,582.64, up £39.34 on last year, to their final bill.

The Local Government Association yesterday predicted English council tax bills will rise by an average of 1.6 per cent to £1,194 per household in 2010/11.

City council leader Bob Price defended the two per cent decision.

He said: “The average Band D homeowner will only have to pay us about £5 a year more, which we consider good value considering the services we provide.

“We are certainly pleased to be able to provide a good level of support to the wide range of volunteer groups.”

Jenny Mann, secretary of the Jericho Community Association, said she was delighted that £50,000 was being set aside for plans to make parts of Jericho a conservation area.

She said: “The area does need protecting from over-enthusiastic developers.”

The Wood Farm Community Building Project received £125,000. Treasurer Ray Clare said: “It is a good sum of money that will certainly be good for the community.”

Councillors also allocated £75,000 to the Rose Hill and Iffley play site, and £30,000 over two years to the Littlemore Summer Playscheme.

Councillors also plan to spend £16,000 to help fund an extra Police Community Support Officer in the city and £6,000 to keep the public toilets at Old Wolvercote open throughout the winter.

Another £25,000 was put aside for community grants.