Strategy and Resources Committee will meet on February 21st to discuss proposals for the budget and how, despite a financial backdrop that continues to prove difficult, the Council will deliver on its priorities. The final decision on approving the budget will be made at Full Council Budget Committee on 6th March.
Sheffield City Council on course to set a balanced budget despite challenges
Today (Thursday 21 December 2023), at Sheffield City Council’s Extraordinary Strategy and Resources Policy Committee, Councillors were given a positive, but realistic, update on the financial outlook for the council and the budget for 2024/25.
Over the past 13 years, Sheffield, along with many other local authorities, has seen significant reductions in funding from central government. Alongside this, demand for services is rising. Despite these challenges, the Council is on course to set a balanced budget for 2024/25. The Budget will be agreed by the Council in March 2024.
Key points:
- Over the coming 4-year period the Council has a forecast budget gap of £61.2m of which £18.1m is in 2024/25.
- The funding from Government for Council services has reduced since 2010 which means the Council now receives 29% or £856 per resident less in real terms.
- Sheffield City Council’s budget position is not an outlier – it reflects the position across Local Government
Leader of Sheffield City Council, Cllr Tom Hunt said:
“For 13 years we have had our budget hammered by cuts from central government. Demand for our services is increasing, prices are rising but the Government has failed to provide councils with any additional help this year. Local government funding cannot carry on like this.
“This means we have been forced to make difficult decisions, but we have managed our finances carefully and responsibly. Other councils are in extremely difficult situations, but we are not. We will continue to be prudent, and we will continue to make the case for more funding from central government.
“The Government needs to provide councils with a long-term funding plan that sufficiently meets our needs. We need a multi-year financial settlement, not an annual settlement. However, we are being proactive. Our new draft Council Plan sits alongside our four-year medium term financial analysis. Despite the lack of help from government, we are focused on taking a longer-term, more strategic approach to our finances, and making sure our resources are focused on providing great local services.”
Sheffield City Council invites anyone with an interest in Sheffield to take part in the consultation on the draft Council Plan and medium term financial analysis: https://haveyoursay.sheffield.gov.uk/
