Concern has been raised that taxpayers in Oxfordshire could end up shouldering West Berkshire Council's debt if Oxfordshire County Council is abolished.
County councils are being abolished across England as the Labour government pushes reorganisation to end two-tier local government. Two of the three proposals for Oxfordshire would create a 'Ridgeway Council' made up of South Oxfordshire District Council, the Vale of White Horse and West Berkshire Council.
Digby Oldridge, who lives in Longcot in the Vale of White Horse, has warned about the financial impact. He says West Berkshire has a pension deficit of around £600 million and contacted Charlie Maynard, the Liberal Democrat MP for Witney, about the issue. Mr Maynard received a letter from Alison McGovern, Minister of State for Local Government and Homelessness.
Ms McGovern's letter states: "On liabilities, it is expected that assets and liabilities remain locally managed by councils.
"It is essential that councils continue to deliver their business-as-usual services and duties, which remain unchanged until reorganisation is complete.
"There is a suite of general continuity regulations for local government reorganisation made under the Local Government and Public Involvement in Health Act 2007 which ensure smooth transfer to new unitary councils."
Mr Oldridge argues this would leave Oxfordshire taxpayers to pick up West Berkshire's bills. He said: "The letter effectively confirms that if this merger goes ahead, West Berkshire's debts will just be 'locally managed' by the new council.
"In plain English, that means South Oxfordshire and Vale taxpayers are being asked to take on a share of a pension deficit that is north of £600 million.
"It also means we would be merging with a council that is currently under emergency financial support from the government after their reserves dropped to just eight days' worth of funding last year."
West Berkshire Council received £16 million of Exceptional Financial Support from the government in February 2025.
In response, a West Berkshire Council spokesperson said: "The new Ridgeway Council would have the assets and liabilities from the previous councils, and in West Berkshire Council's case, there are over £0.7 billion of assets and £0.4 billion of liabilities with net assets of £280.7 million, as of March 31, 2025."
The government consultation into reorganising Oxfordshire into unitary authorities closed earlier this month. Ridgeway could include all three existing councils, be reduced in size (losing 25 parishes from South Oxfordshire and nine parishes from Vale of White Horse), or the county council could be converted into a unitary authority with no boundary changes.
James Aldridge, Local Democracy Reporter
