The Oxford Model is an innovative approach adopted by Oxford City Council to enhance its financial independence and maintain high-quality local services. It involves "insourcing" services rather than outsourcing them to private companies. This model allows the Council to retain control over service quality, keeps more of its spend local, and ensures that profits are reinvested back into the community rather than going to external shareholders.
Key aspects of the Oxford Model include:
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Ownership of Companies: The Council owns two wholly-owned companies:
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Oxford Direct Services (ODS): Responsible for waste collection, street cleaning, property maintenance, highways, and other direct services.
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OX Place: Focuses on designing and building new homes for Oxford, contributing to affordable housing development in the city.
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The Council also has joint venture interests in the Barton Park and Oxpens developments, and it generates income from a commercial property portfolio.
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Financial Benefits: The model generates around £20 million annually, which supports frontline services and other Council activities. The profits made by these companies go directly back to the Council, helping to fund essential public services, reducing dependency on government funding, and enhancing financial stability.
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Local Employment and Quality Control: By keeping services in-house and more of its spend local, the Council creates high-quality local employment opportunities and maintains control over the quality and delivery of its services. This approach aligns services closely with local needs and expectations.
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External Contracts: The Council’s companies are also empowered to bid for external contracts, providing additional revenue streams and reinforcing the financial sustainability of the model.
The Oxford Model is considered a pioneering approach that combines public service objectives with commercial enterprise, making it an example for other councils aiming to improve their financial resilience and service quality.
