Sheffield City Council ‘cautiously positive’ as budget recognises challenges in local government sector

Rachel Reeves, the chancellor, has introduced her budget in which she announced a number of measures to collect tax – £40bn of them which is the largest amount any chancellor has set out since Norman Lamont in 1993 – to fill the “black hole” in the country’s finances in the years to follow.

However, the budget wasn’t just all about taxes.

She also announced billions of pounds of investment into sectors (such as housing, aerospace, science and more).

Ms Reeves promised £1.3bn for councils, including at least £600m for social care and £230m to tackle homelessness and rough sleeping.

The South Yorkshire mayor Oliver Coppard has already told the Local Democracy Reporting Service (LDRS) that he welcomed the budget, and while he knew this pot of money wouldn’t solve everything at once, this was the first step to do so.

After the budget, Sheffield City Council was also approached for a comment where there may be some optimism.

Cllr Zahira Naz, chair of the finance and performance committee, told the LDRS: “The budget recognises the challenging financial situation facing the local government sector – including in Sheffield – and wider public services.

“Although the specific impacts of the budget for the city council are still not known in detail, we are cautiously positive following the chancellor’s speech earlier. The specific recognition of the pressure facing the special educational needs and disabilities system is welcome, as is the additional funding announced for social care and tackling homelessness, which are all key areas of demand pressure for the council.

“Moving towards a multi-year funding settlement will provide further certainty for local government budgets over the longer term.

“People across Sheffield rely on public services every day and so the additional investment into our schools and NHS is extremely welcome. Raising the National Living Wage and Carers Allowance, along with extending the Household Support Fund, will help to put more money in people’s pockets and enable us to address hardship.

“We continue to take proactive steps to ensure that our resources are managed carefully and prudently. Working with our partners, we are focusing on rebuilding public services, delivering growth and bringing about long-term change for the city.”