£23m overspent - Sheffield Council warns further lockdowns would cause financial problems

The council’s revenue budget is currently forecast to be overspent by £23m - the vast majority of the pressure is due to the impacts of coronavirus on the city.

Finance bosses are looking at whether any savings can be temporarily released. The council has £50m of reserves that could be used over the next four years but using £23m out of that would be a "significant risk".

They are calling on the Government to help and say without its support, the council won't be able to set a sustainable budget in the future.

Sheffield Council estimates the overall financial cost of the pandemic will be upwards of £78m, though this will change as the longer term effects of the virus become better known.

Dave Phillips, head of strategic finance, says in a report: "The council is confident that it can manage the financial pressures emerging from the crisis in the short term, assuming that there are no further significant spikes in infections and further lockdowns.

"The council is planning transformative changes that are needed to re-balance its financial position and protect services in the medium term.

"This process will be challenging however and the council is also keen to act as a catalyst to regenerate the economy of the city and the wider region.

"The council welcomes the additional funding announced so far by the Government though it must be emphasised that more financial support is needed through the immediate crisis and the medium term."

The council is reviewing, and where possible removing, any pressures that aren't related to Covid-19.

It's working with partners, including Sheffield City Trust, to find improvements that keep service levels for the public whilst potentially reducing costs.

Sheffield City Trust earlier this week opened redundancy consultation and says venues that are generating no income will have a much-reduced workforce to carry out essential maintenance while they are mothballed awaiting a change in circumstances.

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