The Council’s Strategy and Resources Committee will meet on Wednesday 19 February to discuss proposals for a balanced budget in 2025/26 and how, despite a financial backdrop that continues to prove difficult, the Council will deliver on its priorities.
Councils up and down the country continue to find themselves in challenging financial positions. Sheffield, like many local authorities, is facing significantly increased costs to provide services alongside rising demand for those services, particularly in social care, for both children and adults.
Sheffield City Council has continued its policy of prudent financial planning both in the short-term and in balancing the Council’s longer-term financial situation, for this reason.
Efficiency work targeted through the Future Sheffield program will continue to identify further savings.
The Council is required by statute to set a balanced budget. Budget savings of £15.6m, service efficiencies and increased income will need to continue to be delivered during 2025/26.
The budget proposals put forward, if approved, will see the Council maintain critical services for the citizens of Sheffield and deliver the priorities set out in the Council Plan.
The 2025/26 budget focuses on aligning resources with the Council Plan's strategic outcomes. Investment decisions and savings proposals are assessed against these strategic outcomes and priorities to ensure effective resource allocation.
The budget plans include an increase of 4.99% in Council Tax. 2.00% of this increase is dedicated to help with the cost of care for older people.
“We manage our budget carefully and responsibly. The last decade has seen Councils dealing with a difficult financial situation. Our funding has been cut massively since 2010, prices have gone up and there is rising demand for the services that we provide.
“But despite those challenges, we are setting out plans for a balanced budget in 2025/26. The new Government is providing more financial support for Councils, which is very welcome.
“We will continue to provide vital frontline services that the people of Sheffield rely on, while also taking the necessary steps to find efficiencies. Our Future Sheffield programme is vital to us doing that.”
Cllr Zahira Naz, Chair of the Finance and Performance Committee,
The final budget plans for 2025/26 will be considered by the Strategy and Resources Committee on Wednesday 19 February before going on to the annual budget debate and vote by the full council held on Wednesday 5 March.