Banbury is a market town and Civil parishes in England on the River Cherwell in the Cherwell (district) of Oxfordshire. It is northwest of London, southeast of Birmingham, south of Coventry and north northwest of the county town of Oxford. The urban area, including surrounding parishes, had a population of 43,867 at the United Kingdom Census 2001, though this figure has increased in recent years. Other nearby towns and cities include Bicester to the south southeast, Milton Keynes and Northampton to the east, and north of Banbury, the towns of Stratford-Upon-Avon, Warwick, Royal Leamington Spa, Kenilworth, Coventry, Rugby, Warwickshire and Daventry span from east to west. Banbury's Member of Parliament is Tony Baldry.
Banbury is a significant commercial and retail centre for the surrounding area, which is predominantly rural. Banbury's main industries are car components, electrical goods, plastics, food processing, and printing. Banbury is home to the world's largest coffee-processing facility (Kraft Foods), built in 1964. The town is famed for Banbury cakes â€“ similar to Eccles cakes but oval in shape. Since July 2000 Banbury has hosted a unique gathering of traditional mock animals, from around the UK, at the annual Banbury Hobby horse Festival.
The surrounding area is known informally as Banburyshire and covers the north half of the Cherwell district and neighbouring areas. As Banbury lies near the Oxfordshire border,"Banburyshire" includes parts of Northamptonshire and Warwickshire.