Decision Maker: Strategy and Resources Policy Committee

Outcome: Recommmend Forward to Council

Is Key Decision?: Yes

Is Callable In?: No

Date of Decision: February 19, 2025

Purpose:

Content: 9.1 The Director of Finance and Commercial Services submitted reports containing proposals with regard to the Council’s Revenue Budget for 2025-26 and the Capital Strategy for 2025/26 to 2029/30.   The purpose of the Revenue Budget report is to:   ·         recommend to Full Council the City Council’s revenue budget for 2025/26, including the position on reserves and balances;   ·         recommend to Full Council to approve a 2025/26 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 Budget Book 2025-2056 is to provide a snapshot of our capital programme for the period 2025-2030, together with the background and context for our capital investment over this period and for the next thirty years.   The ‘Flexible Use of Capital Receipts Strategy 2025-30’ proposes the earmarking of a sum of up to £5m of existing capital receipts to support organisational transformation for the period 2025 – 30.   In addition, the Director of Finance and Commercial 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 the version of the Pay Policy as approved for submission by the Finance and Performance Policy Committee on the 17 February 2025.     9.2 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 5th March 2025, the recommendations in the Revenue Budget report, as set out below:-   (i) To approve a net Revenue Budget for 2025/26 amounting to £563.842m;   (ii) To approve a Band D equivalent Council Tax of £2,028.99 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 2025/26, in consultation with elected Members;   (v) To approve the savings as set out in Appendix 2;   (vi) To approve the revenue budget allocations for each of the services, as set out in Appendix 4a;   (vii) 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 2025/26, in accordance with sections 30 to 36 of the Local Government Finance Act 1992;   (viii) 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;   (ix) To note the precepts issued by local parish councils which add £694,640 to the calculation of the budget requirement in accordance with Sections 31 to 36 of the Local Government Finance Act 1992;   (x) To approve the Treasury Management and Annual Investment Strategies set out in Appendix 7 and the recommendations contained therein;   (xi) To approve the Minimum Revenue Provision (MRP) Policy set out in Appendix 7, which takes into account the revisions proposed for 2025/26 onwards;   (xii) To agree that authority be delegated to the Director of Finance and Commercial 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;   (xiii) To approve a Pay Policy for 2025/26 as set out in the supplementary agenda pack;   (xiv) To agree that (a) the Members allowances scheme introduced in 2022/23 and reviewed in 2024/25 be implemented for 2025/26 and (b) 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   (xv) 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 have been considered by a Policy Committee as part of the budget process and are included in Appendix 3 – Committee External Income of the Sheffield City Council Revenue Budget 2025/26.   (b) As regards the Capital Strategy, approves the submission to the meeting of the City Council on 5 March 2025, the recommendations:-   (i) To approve the contents of the Capital Strategy;   (ii) To note the specific projects included in the years 2025/26 to 2029/30;   (iii) To note the block allocations included within the programme; detailed proposals will be brought back for separate Member approval as part of the monthly monitoring procedures; and   (iv) To approve the ‘Flexible Use of Capital Receipts Strategy 2025-30’     9.3 Reasons for Decision     9.3.1 The City Council on 5 March 2025 meets to consider the Revenue Budget for 2025/26 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.     9.3.2 Approval of the Capital Strategy and Budget Book will endorse the Council’s proposed approach to capital investment for the next five years.   Approval of the ‘Flexible Use of Capital Receipts Strategy 2025-30’ will endorse the use of existing capital receipts to part-fund the Future Sheffield transformation programme.     9.4 Alternatives Considered and Rejected     9.4.1 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.     9.4.2 It is a legal requirement for all local authorities to produce a Capital Strategy.