I also thought that the money in the LARS pot does not increase if a new unit takes on the task, that any new LARS unit will take money away from existing units.
Correct.
I don't think there's a MOD unit in the UK which provides LARS on a commercially viable basis, they do it because they have the equipment and staffing which they don't really need for the specific airfield use, but LARS does justify the written business case to the MOD Bean counters.
Most RAF LARS providers get more than their civillian counterparts for providing the same or a lesser service because they do so with more staff.
Bonkers I know, but at the moment, that's the way it works.
It makes sense that if Oxford could demonstrate that they have the capacity to offer LARS, they'd stand a very good chance of getting it and get much needed revenue from it.
It's up to them.