Content

11.1

The
 Director of Finance, Commercial and
Performance Services presented a report containing updated
information on the 2024/25 Revenue Budget Outturn, including the
detailed committee budget monitoring information and management
actions.
 
The
report states that the Council has experienced financial challenges
throughout 2024-25 due to increased service demands, rising costs,
and reduced funding. This has resulted in an overspend of
£34.7 million for the 2024-25 fiscal year, which equates to
7% of the net revenue budget. Key service areas affected include
Housing and Homelessness, Adults and Children’s Social Care,
and SEN home-to-school transport. The Council will be drawing from
budget contingency reserves to fund this year’s budget
overspend. To maintain financial sustainability, the Council is
implementing the “Future Sheffield “programme, which
aims to transform services within a more sustainable and efficient
operating model. This transformation is essential to ensure the
delivery of statutory services and to drive initiatives that
support city growth, aligning with the Council’s broader
strategic goals as outlined in the Medium-Term Financial Strategy.
The emphasis on long-term financial sustainability underscores the
importance of these ongoing transformation efforts.

 
The
Government’s announcement to implement a multi-year financial
settlement will enable the Council to plan strategically and
allocate resources more effectively from 2026-27, ensuring
alignment with our long-term goals. We have laid robust foundations
for a more strategic approach to resource allocation through the
introduction of Priority Based Budgeting for 2025-26. This
initiative will further support the Council in achieving financial
sustainability.

 

 

11.2

RESOLVED UNANIMOUSLY: That Strategy and
Resources Policy Committee note the updated information on the
2024/25 Revenue Budget Outturn as described in this report
including the detailed committee budget monitoring information and
management actions provided.

 

 

11.3

Reasons for Decision

 

 

11.3.1

To record
formally changes to the Revenue Budget.

 

 

11.4

Alternatives Considered and
Rejected

 

 

11.4.1

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.