Content

12.1

The Director of Finance, Commercial and
Performance Services and the Assistant Director of Transformation
presented a report to articulate the future ambition for the
Council, the current position against this ambition and the further
planned work needed to deliver this ambition both financially and
non-financially.
 
This will
include:
 
? The future ambition for the Council, including
the achievement of Council goals, prioritised focus on prevention
and the target operating model
? Understanding the current position including
the financial drivers and pressures the Council is experiencing
which need to be addressed to achieve this
ambition
? Setting a refreshed robust and balanced Medium
Term Financial Strategy (MTFS) to enable the Council to remain
financially sustainable whilst delivering this
ambition
? Articulate the proactive work being delivered
and accelerated within Future Sheffield to support the both the
MTFS and the broader Council
ambitions

 

 

12.2

RESOLVED UNANIMOUSLY: That Strategy and
Resources Policy Committee:-

 

 

 

(a) notes the
current financial position, including the financial drivers and the
link between the Medium Term Financial
Strategy (MTFS) and Future Sheffield to address these;
 
(b) approve the
Medium Term Financial Strategy (MTFS)
2026/27 – 2029/30 as set out in this report, in Appendix 1
and summarised in Annex A;
 
(c) notes the
MTFS budget gap stands at £69.6m by 2029/30, an increase of
£17.3m compared to the MTFS published in March 2025;
 
(d) notes this
adverse movement is mainly the result of expanding the MTFS period
to include 2029/30 and increased demand pressures in social care
services totalling £62.2m. These are significantly offset by
the inclusion of the savings identified within the Future Sheffield
Programme of £44.9m;
 
(e) note for
consideration the key assumptions applied in determining the
updated MTFS budget gap as set out in Annex B of this report;
 
(f) endorse the
proposed approach to ensure the financial sustainability of the
Council over the medium term;
 
(g) approves the
recommended proposed changes that will take place across each layer
of the Target Operating Model (TOM) under Future Sheffield, and the
associated benefits and risks, as set out in Appendix 2;
 
(h) accepts the
detailed update on progress of the Future Sheffield Transformation
programme including the financial and non-financial benefits
identified to date; and
 
(i) approves the
proposed next steps for Future Sheffield to progress with the
implementation of the Target Operating Model (TOM) and the delivery
of benefits.

 

 

12.3

Reasons for Decision

 

 

12.3.1

The Council is
required to both set a balanced budget and to ensure that in-year
income and expenditure are balanced. No other alternatives were
considered.

 

 

12.4

Alternatives Considered and
Rejected

 

 

12.4.1

The Sensitivity Analysis within Annex C sets out what might be
the result of changes to the assumptions applied in our MTFS
planning. Accepted assumption are based on stress testing by
business strategy and financial professionals within the council to
arrive at our best estimates.