The Council is setting out its refreshed Medium-Term Financial Strategy (MTFS) and providing an update on its flagship transformation programme, Future Sheffield, as it works to modernise the way it delivers services, strengthen its financial sustainability, and ensure the Council continues to meet the needs of residents now and into the future.
The updated MTFS forecasts a budget gap of £7.7 million in 2026/27 and forecasts a gap of £69.6 million across the four-year period of 2026/27 to 2029/30. This increase reflects both a longer planning horizon and continued pressure on high-demand services such as social care. The strategy demonstrates the Council’s commitment to prudent financial planning and long-term sustainability - avoiding short-term cuts in favour of measured, strategic change. The recently announced Fair Funding reform aims to reset government funding allocations for councils across England, to ensure resources are targeted where the need is greatest, and this will also inform future updates to the Council’s MTFS.
Alongside the MTFS, the Council is delivering its Future Sheffield programme - a bold and ambitious initiative to modernise services, improve outcomes for residents, and ensure the Council operates more effectively and efficiently.
“We are putting people at the heart of everything we do, supporting our communities, working hard to create jobs and grow our economy, and making sure our services work for residents.
Like councils up and down the country, Sheffield is facing increased demand for our services. But we are not standing still. The Future Sheffield strategy sets out a clear plan to modernise how the Council works and ensure we are more efficient and effective.
At the same time, the Government has set out proposals to reform funding for councils so that there is a fairer, simpler system that targets money where it is most needed. This is welcome and we look forward to receiving a multi-year financial settlement from Government later this year so that we can plan for the longer term.”
Councillor Tom Hunt, Leader of Sheffield City Council
Future Sheffield will drive change across all parts of the Council. It includes digital transformation, improvements to customer experience, better support for frontline workers, and a new operating model focused on prevention and joined-up working. The programme has identified £45 million in financial savings that will be delivered by 2028/29, helping to close the budget gap while improving services.
The Council is also continuing to engage closely with residents, partners, and community organisations as it designs and tests new models of service delivery that will deliver for Sheffield residents in the long term. For example, work on its Customer Experience Strategy has already seen an upgraded Customer Relations Management (CRM) system, enabling the newly formed Customer Hub to deliver a better service for residents by helping staff resolve issues faster and more accurately. It has also resulted in a 24-hour automated telephone repair reporting service for tenants, allowing them to report non-urgent repairs at a time that suits them.
“We are committed to working across parties and with our communities to ensure Sheffield remains a city that delivers for everyone.
"This approach means we can build the foundation of the Council’s long-term financial health as a modern, responsive council that manages our money responsibly and prudently and puts residents first.”
Cllr Zahira Naz, Chair of the Finance and Performance Committee
The full report will be discussed at the Strategy and Resources Committee on 10 July 2025, with further updates and opportunities for public engagement expected later this year.