Decision Maker: Strategy and Resources Policy Committee

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: No

Date of Decision: July 10, 2025

Purpose:

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.