Sheffield’s budget sent to get approved at full council meeting next month

At Sheffield Council’s Strategy and Resources Policy Committee meeting yesterday, members discussed the council’s revenue budget (including reserves and balances), the proposed increase in the council tax and the capital strategy.

At the meeting, Philip Gregory, the director of finance and commercial services, said it was a legal requirement for every local authority to set a balanced budget before the start of the financial year.

However, he added it was a challenging process due to the combination of “reductions in government funding since 2010, the increase in demand for council services – particularly in statutory social care services – and the increase in cost of delivering services”.

As stated in a document published ahead, he said Sheffield has seen a reduction of 26 per cent in government funding since 2010.

“This is higher than the national average, that is 18 per cent”, he said.

He said it was a “difficult decision to recommend” the full 4.99 per cent increase in council tax – of which three per cent is for general services while 1.99 per cent is ringfenced for social care – amid the cost of living crisis.

The near five per cent is the maximum allowed without a referendum, with households also facing increases in the amount they pay to police and the fire service.

A document recognised that this would place an additional financial burden on the households of Sheffield – as most homes will see an increase of £1.17 per week.

However, “Sheffield is committed to supporting its most vulnerable families” and as a result, £200k has been added to the council tax hardship fund, bringing the total to £2.4m for 2024/25.

Cllr Mike Levery (West Ecclesfield, Liberal Democrats) told the chamber that last year the council used £5million from its reserves “to bail out the budget”, and for the coming year, £17.4m will be used.

He asked Mr Gregory about how much confidence he has got in next year’s budget to bring the number down again.

Mr Gregory said the growth in the overspend was the result of the circumstances and issues – such as social care placement costs – mentioned earlier.

The budget has been approved by the members and it will be further discussed at next month’s (March 6) full council meeting at Sheffield Town Hall.