Decision Maker:

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Date of Decision: September 18, 2024

Purpose:

Content: 14.1 The Assistant Director of Finance and Accounting introduced the report which provided the Committee with an update on the following:   ·       Sheffield City Council is currently facing significant financial challenges, driven by increased service demands, rising costs, and reduced funding. This has resulted in a projected overspend of £34.3 million for the 2024-25 fiscal year, which represents approximately 7% of the net revenue budget. The forecasted overspend is spread across several key service areas, including Housing and Homelessness, Adults and Children's Social Care and SEN home-to-school transport. ·       While the Council can temporarily avoid issuing a section 114 notice by utilising reserves to balance this year's budget, the financial outlook remains difficult, with limited hope for government relief and growing pressures across the public sector, including the NHS, schools, and higher education institutions. ·       The Council's approach to addressing these challenges is centred around the "Future Sheffield" programme, a critical initiative aimed at transforming services to create a more sustainable and efficient operating model. This transformation is essential not only to ensure the delivery of statutory services but also to drive initiatives that support city growth and align with the Council's broader strategic goals, as outlined in the Medium-Term Financial Strategy. ·       The need for long-term financial sustainability underscores the importance of the ongoing transformation efforts. 14.2 RESOLVED UNANIMOUSLY: That the Adult Health and Social Care 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. 14.3 Reasons for Decision 14.3.1 To record formally changes to the Revenue Budget. 14.4 Alternatives Considered and Rejected 14.4.1 The Council is required to both set a balance budget and to ensure that in-year income and expenditure are balanced. No other alternatives were considered.