Content

14.1

The
Assistant Director of Finance and Accounting introduced the report
which provided the Committee with an update on the
following:
 
·      
Sheffield City Council is currently facing significant financial
challenges, driven by increased service demands, rising costs, and
reduced funding. This has resulted in a projected overspend of
£34.3 million for the 2024-25 fiscal year, which represents
approximately 7% of the net revenue budget. The forecasted
overspend is spread across several key service areas, including
Housing and Homelessness, Adults and Children's Social Care and SEN
home-to-school transport.
·      
While the Council can temporarily avoid issuing a section 114
notice by utilising reserves to balance this year's budget, the
financial outlook remains difficult, with limited hope for
government relief and growing pressures across the public sector,
including the NHS, schools, and higher education
institutions.
·      
The Council's approach to addressing these challenges is centred
around the "Future Sheffield" programme, a critical initiative
aimed at transforming services to create a more sustainable and
efficient operating model. This transformation is essential not
only to ensure the delivery of statutory services but also to drive
initiatives that support city growth and align with the Council's
broader strategic goals, as outlined in the Medium-Term Financial
Strategy.
·      
The need for long-term financial sustainability underscores the
importance of the ongoing transformation efforts.

14.2

RESOLVED UNANIMOUSLY: That the Adult Health
and Social Care Policy Committee:-

Note
the updated information on the 2024/25 Revenue Budget Outturn as
described in this report including the detailed committee budget
monitoring information and management actions provided.

14.3

Reasons for Decision

14.3.1

To
record formally changes to the Revenue Budget.

14.4

Alternatives Considered and Rejected

14.4.1

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