Content

10.1

The Director of Finance, Commercial and
Performance Services submitted reports containing proposals with
regard to the Council’s Revenue Budget for 2026-27 and the
Capital Strategy and Investment Pipeline for 2026 to
2057.
 
The purpose of the Revenue Budget report is
to:

recommend to Full
Council the City Council’s revenue budget for 2026/27,
including the position on reserves and
balances;
recommend to Full
Council to approve a 2026/27 Council Tax for the City Council;
and
recommend to Full
Council to note the levies and precepts made on the City Council by
other authorities.

 
The purpose of the Capital Strategy and
Investment Pipeline 2026-2057 is to provide an overview of the
Council’s capital programme; details of the Council’s
Capital Strategy (including the policy environment, funding mix and
governance of the Capital Programme); and details of the
Council’s Investment Pipeline split by Policy Committee
(including the context, detailed pipeline, net zero impacts and key
risks).
 
In addition, the Director of Finance, Commercial
and Performance Services submitted a supplementary report providing
details of the South Yorkshire Fire and Rescue Authority Precept.
The supplementary report set out newly stated recommendations for
that element of the budget report. It also provides members with an
updated version of the Pay Policy Appendix 11 to include details of
the appointment of a new Chief Operating Officer, and to remove a
duplicated post title.

 

 

10.2

RESOLVED UNANIMOUSLY: That Strategy and
Resources Policy Committee:-

 

 

 

(a) As regards
the Revenue Budget, approves for submission to the meeting of the
City Council on 4th March 2026, the recommendations in the Revenue
Budget report, as set out below:-

 

 

 

(i) To approve a
net Revenue Budget for 2026/27 amounting to
£699.102m;
 
(ii) To approve
a Band D equivalent Council Tax of £2,130.23 for City Council
services, i.e. an increase of 4.99% (2.99% City Council increase
and 2% for the social care precept);
 
(iii) To note
that the Section 151 Officer has reviewed the robustness of the
estimates and the adequacy of the proposed financial reserves, in
accordance with Section 25 of the Local Government Act 2003.
Further details can be found in Appendix 5 and within the Section
25 Statutory Statement on Sustainability of Budget and Level of
Reserves from paragraph 2;
 
(iv) To note
that, if overspends against the agreed budgets emerge, then
Executive Directors and Directors will be required to develop and
implement plans to mitigate fully any overspend, within 2026/27, in
consultation with elected Members;
 
(v) To approve
the savings as set out in Appendix 2;
 
(vi) To note the
savings set out in Appendix 2a are part of the balanced budget and
are to be delivered through the Future Sheffield
programme;
 
(vii) To approve
the revenue budget allocations for each of the services, as set out
in Appendix 4a;
 
(viii) To note
that, based on the estimated expenditure level set out in Appendix
4 to this report, the amounts shown in part B of Appendix 6 would
be calculated by the City Council for the year 2026/27, in
accordance with sections 30 to 36 of the Local Government Finance
Act 1992;
 
(ix) To note the
information on the precepts issued by the South Yorkshire Mayoral
Police & Crime Commissioner and of South Yorkshire Fire &
Rescue Authority, together with the impact of these on the overall
amount of Council Tax to be charged in the City Council’s
area;
 
(x) To note the
precepts issued by local parish councils which add £724,640
to the calculation of the budget requirement in accordance with
Sections 31 to 36 of the Local Government Finance Act
1992;
 
(xi) To approve
the Treasury Management and Annual Investment Strategies set out in
Appendix 7 and the recommendations contained
therein;
 
(xii) To approve
the Minimum Revenue Provision (MRP) Policy set out in Appendix
7;  which takes into account the
revisions proposed for 2026/27 onwards;      
 
(xiii) To agree
that authority be delegated to the Director of Finance, Commercial
and Performance Services to undertake Treasury Management activity,
to create and amend appropriate Treasury Management Practice
Statements and to report on the operation of Treasury Management
activity on the terms set out in these documents;
 
(xiv) To approve
a Pay Policy for 2026/27 as set out in Appendix
11;
 
(xv) To agree
that (1) the Members allowances scheme introduced in 2022/23 and
reviewed in 2024/25 be implemented for 2026/27 and (2) to note that
the Independent Remuneration Panel will review the Scheme each
year, to make sure the scheme supports the governance structure and
the roles and responsibilities of elected members;
and
 
(xvi) Except
where the decision is to be taken by the Council as a Charity
Trustee, delegates authority to the relevant Director to increase
fees and charges where they:

are included in Appendix 3 - Committee External
Income of the Sheffield City Council Revenue Budget
2026/27
are increases that the budget otherwise assumes
will be made
are made to ensure fees and charges are increased
by CPI or otherwise based on current costs.

 

 

 

(b) As regards
the Capital Strategy, approves for submission to the meeting of the
City Council on 4th March 2026, the recommendation to approve the
contents of the Capital Strategy and Investment Pipeline and the
specific projects included in the years 2026/27 to
2030/31.

 

 

10.3

Reasons for Decision

 

 

10.3.1

The City Council
on 4 March 2026 meets to consider the Revenue Budget for 2026/27
and to determine the Council Tax for that year. The report provides
information to enable the Council to set a budget and determine the
Council Tax. The proposals set out in this report provide for a
balanced budget to be recommended to Full
Council.

 

 

10.3.2

Approval of the Capital Strategy and Budget Book will endorse
the Council’s proposed approach to capital investment for the
next five years.

 

 

10.4

Alternatives Considered and
Rejected

 

 

10.4.1

The Council is required by law to set and balanced budget. The
recommendations made to Members represent what Officers believe to
be the best options available to the Council, in line with Council
priorities, given the constraints on funding and the use to which
funding is put within the Revenue Budget and the Capital
Programme.

 

 

10.4.2

It is a legal requirement for all local authorities to produce a
Capital Strategy.