Decision

1. 1

The Committee considered a report of the Director of Finance and Commercial Services setting out details of the Medium-Term Financial Strategy (MTFS).

The strategy sets out the Council’s financial outlook for the period 2027/28 to 2030/31 and demonstrates a significantly stronger and more sustainable financial position than has been presented in recent years. The strategy has been developed against a backdrop of improved certainty around local government finance but also reflects the Council’s commitment to long-term financial sustainability, investment in transformation and the protection of essential public services.

The Council’s mid-case forecast identifies a budget gap of £10.4m by 2030/31. Whilst this represents a movement from the £2.0m gap reported in January 2026, the majority of that change arises from extending the MTFS to include an additional financial year. Importantly, the forecast position remains substantially improved compared with previous MTFS forecasts, where budget gaps were closer to £70m over a comparable planning period. The Council is therefore entering this planning cycle from a much stronger financial position than has been the case for many years.

1. 2

RESOLVED UNANIMOUSLY: That Strategy and Resources Policy Committee:-

(a) approves the Medium Term Financial Strategy (MTFS) 2027/28 – 2030/31 as set out in this report;

(b) notes the MTFS budget gap stands at £10.4m by 2030/31, an increase of £8.4m compared to the Budget Update paper published in January 2026;

(c) notes this adverse movement is mainly the result of expanding the MTFS period to include 2030/31;

(d) notes that this MTFS is the most sustainable in recent times but still requires significant Future Sheffield savings over the period;

(e) notes the key assumptions applied in determining the updated MTFS budget gap as set out in Appendix B of this report; and

(f) endorses the proposed approach to ensure the financial sustainability of the Council over the medium term.

1. 3

Reasons for Decision

1. 3.1

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.

1. 4

Alternatives Considered and Rejected

1. 4.1

The Sensitivity Analysis section of this report sets out what might be the result of changes to the assumptions applied in our MTFS planning. Accepted assumptions are based on stress testing by business strategy and financial professionals within the Council to arrive at our best estimates