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The city’s Clean Air Zone will now not be implemented until 2023, two years after the government’s deadline which council officers said poses “serious risk” of legal challenges and losing funding.

Budget: Sheffield Council runs out of reserves as it faces financial cliff edge ...

When finally implemented, it will charge drivers of the most polluting taxis, vans, buses, coaches and lorries to drive in the city centre.

Sheffield Council’s delay in implementing its Clean Air Zone cost the authority £1.2 million in lost income.

In the latest financial report, council officers said missing the government’s deadline will cost £1.2 million so far.

They added: “The income forecast from the introduction of the charging Clean Air Zone remains uncertain given potential slippage in the programme following continued dialogue with central government.”

Recently it was revealed that the budget for the scheme’s signage had increased by £483,000 to a total of £891,000 but this will be paid using the Clean Air Zone Implementation Fund.

Councillor Shaffaq Mohammed, leader of Sheffield Liberal Democrats and member of the finance sub-committee, said it comes as the council battles to set a balanced budget for next year, with a forecast overspend of more than £20 million already and no reserves left.

He said: “We are losing that money for not doing something we said we were going to do.

“It all adds to the pressures.”

Latest on Sheffield’s Clean Air Zone

The authority said the zone is needed because more than 500 people a year die early in Sheffield as a result of air pollution and the city has exceeded legal levels of nitrogen dioxide since 2010.

As a result, the government ordered the council to reduce the city’s emissions to legal levels as soon as possible and “by 2021 at the latest”.

When the scheme is finally implemented, drivers of vehicles more polluting than the Euro 6 diesel or Euro 4 petrol emission standard will have to pay a daily charge to drive in the city centre.

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This will be £10 a day for vans and taxis and £50 a day for coaches, buses and lorries.

Why has Sheffield’s Clean Air Zone (CAZ) been delayed?

The CAZ was first announced in 2018. It was delayed in 2020 due to Covid-19 and a new date of 2022 was given. Then it was delayed until 2023.

Clean Air Zone: delay costs Sheffield Council £1.2 million