Decision

1. 1

The Committee considered a report of the Director of Finance and Commercial Services setting out Sheffield City Council’s Quarter 1 budget monitoring position for 2026/27. The report provides an assessment of the current financial position, the main areas of pressure, the mitigations currently assumed and the actions underway to strengthen delivery and maintain financial grip.

The report stated that at Quarter 1 the General Fund is forecasting an overspend of £8.35m. This position is materially driven by under-delivery or slippage of 2026/27 in-year and Future Sheffield savings, alongside continuing demand and cost pressures in Adults, Children’s Services, Housing Benefit and some corporate enabling services.

The Council set a balanced 2026/27 budget and has a significantly stronger medium-term outlook than in recent years, but that position depends on delivering transformation, maintaining financial discipline, protecting the funding base and avoiding reliance on one-off measures to fund recurring cost pressures.

1. 2

RESOLVED UNANIMOUSLY: That Strategy and Resources Policy Committee:-

(a) notes the Quarter 1 2026/27 forecast General Fund overspend of £8.35m and the key drivers set out in this report; and

(b) notes the recovery actions underway, the continued importance of Future Sheffield delivery, and the supporting information provided in the appendices.

1. 3

Reasons for Decision

1. 3.1

To record formally changes to the Revenue Budget.

1. 4

Alternatives Considered and Rejected

1. 4.1

The Council is required to both set a balanced budget and to ensure that in year income and expenditure are balanced. No other alternatives were considered.