The north-south row over council funding continued after the Local Government Settlement announcement.
Sheffield Liberal Democrat opposition councillors said the city enjoyed ‘significantly more spending power’ than other councils such as Richmond on Thames.
According to Government figures Manchester and Birmingham had larger reductions in their budgets.
Deputy Prime Minister Nick Clegg said the council should collect £39m in unpaid council tax to offset cuts.
He added: “I would urge Labour councillors to get their act together and do something positive to deal with the problem that local government faces regardless of who is in Government.”
Sheffield’s Labour leaders said there were 47 Conservative councils like Wokingham and Surrey which will have increases in funding.
They stressed the reduction to the council’s revenue support grant was £42.7 m.
Coun Ben Curran said: “Sheffield has been completely let down by this Government who have forced cuts on Sheffield and cities in the north, and it is having an impact on services.”