City council warns of £34m overspend for 2024/25

Sheffield City Council said it is facing “significant budgeting difficulties” due to increased service demands, rising costs, and reduced funding.

This has resulted in a projected overspend of £34m for the 2024-25 fiscal year.

However, the council also notes that its immediate financial outlook is not a concern.

It says that due to carefully managing its finances in recent years, the council’s reserves can be used to balance this year’s budget.

The council says it will focus on the Future Sheffield programme, which it describes as a critical initiative aimed at transforming services to create a more sustainable and efficient operating model.

Councillor Zahira Naz, chair of Sheffield City Council’s Finance & Performance Committee, said: “As a council we have previously spoken about taking a proactive approach to financial planning for the coming years to ensure that we deliver the vital services that the people of Sheffield need.

“This does not change. Of course, the current position is challenging, and that will not change for the foreseeable future nationally.

“So we are committed to working cross-party to find solutions that enable us to continue to deliver high-quality services for our residents. The Future Sheffield programme is just one way that allows us to do that.

“The Government has committed to longer-term funding settlements to give us the certainty to plan, and last month’s Autumn Budget outlined some of those provisions, which all Local Authorities will be grateful for.

“This is very welcome, and we look forward to working with the Government to deliver the essential public services that residents rely on, while continuing to deliver a balanced and sustainable budget.”