Decision Maker:

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Date of Decision: January 19, 2026

Purpose:

Content: 12.1 The Director of Finance and Commercial Services and Assistant Director of Finance Business Partnering introduced the report which provided an update on how the Council plans to set a balanced budget for 2026/27. The report set out the budget position, provided an update on the Provisional Local Government Finance Settlement and set out the associated assumptions, risks and opportunities to be considered in setting a balanced budget.     12.2 RESOLVED UNANIMOUSLY: That the Finance and Performance Policy Committee:-   a)    Note the impact of the Local Government Provisional Finance Settlement (LGFS) on the MTFS period to the end of 2029/30. b)    Note the balanced budget position for 2026/27. c)    Note the approach taken to budget setting has changed from previous years, with 2025/26 overspends being built into the 2026/27 budget and updated MTFS position. d)    Note the assumption that Council Tax will increase by 4.99% (inclusive of a 2% Adult Social Care precept) each year throughout the MTFS period to support the financial sustainability of the council. e)    Note that the Recovery Grant is only confirmed for the next 3 years and therefore the council should avoid significant ongoing financial commitments in order to sustain the benefit from the improved funding through the LGFS. f)      Note the impact of the Future Sheffield programme and the pressures, savings and investment proposals set out in the closed Appendix 1 of this report.     12.3 Reasons for Decision     12.3.1 N/A     12.4 Alternatives Considered and Rejected     12.4.1 The Council is required by law to deliver a balance budget and therefore each Committee needs to delivery savings to achieve this. No alternatives have been considered at this stage.