Like local authorities across the country, the Council’s budget has been reduced over a number of years and faces continued pressures across key services including Adult Social Care, Children's Services, and homelessness, driven by rising demand and ongoing cost increases.
The Quarter 1 Budget Monitoring Report sets out the Council’s current forecast for its in-year budget, projecting a gap of £28.2 million. To address this position, the Council has launched a series of service-level programmes and organisation-wide financial measures.
An Adult Social Care Improvement Board, chaired by the Chief Executive, is in place to oversee reforms to improve efficiency while protecting care quality.
Children’s services are reviewing care placements, investing in in-house provision, and working to deliver medium-term savings. A new city-wide approach to Home to School Transport is reducing taxi use and increasing travel training and shared journeys, to reduce costs.
Significant progress has been made in reducing the cost of temporary accommodation, with fewer people in bed and breakfast placements and quicker move-on to permanent housing.
The Council is also introducing organisation-wide measures from 1 September to help close the gap, including recruitment and discretionary spending restrictions across all departments.
This work is being delivered alongside the Future Sheffield programme, a council-wide transformation plan focused on long-term sustainability through service redesign, early intervention, and digital innovation.
“We are facing the same tough choices as councils across the country, but we are taking clear, coordinated action now to tackle these in-year challenges, ensuring Sheffield’s finances continue to be managed responsibly and prudently.
“At the heart of this work is a focus on fairness, efficiency and providing services that deliver for our residents.”
Cllr Zahira Naz, Chair of the Financial Committee at Sheffield City Council
The Council has welcomed the Government’s commitment to a three-year Local Government Finance Settlement from 2026/27 and is actively engaging with national consultations on funding reform. In the meantime, work will continue throughout the year to monitor progress, review reserves and update plans as needed.