Scarborough Athletic remain third in National North despite defeat on one of their longest trips of the season.
The Seadogs were beaten by a 27th minute strike from hosts Banbury.
It was a rare defeat amid a strong spell from Jono Greening's men.
It means they'll be looking to bounce straight back when Boro travel to Northern League Guisborough Town on Tuesday night in the North Riding Senior Cup with a possible clash with Whitby Town for the winners.
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Councillors in the East Riding have expressed a mixture of shock and outrage following the government's "fairer funding review," a provisional settlement that local leaders claim will leave the authority as one of the most financially vulnerable in the country.
Boro chair Trevor Bull says finishing in the playoffs would be a great result after a season of turmoil.
East Riding Council is embarking on a significant organisational overhaul that will include workforce reductions as the local authority grapples with what leaders describe as a "structural" funding crisis.
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