Decision Maker: Strategy and Resources Policy Committee

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: No

Date of Decision: July 10, 2025

Purpose:

Content: 12.1 The Director of Finance, Commercial and Performance Services and the Assistant Director of Transformation presented a report to articulate the future ambition for the Council, the current position against this ambition and the further planned work needed to deliver this ambition both financially and non-financially.   This will include:   ? The future ambition for the Council, including the achievement of Council goals, prioritised focus on prevention and the target operating model ? Understanding the current position including the financial drivers and pressures the Council is experiencing which need to be addressed to achieve this ambition ? Setting a refreshed robust and balanced Medium Term Financial Strategy (MTFS) to enable the Council to remain financially sustainable whilst delivering this ambition ? Articulate the proactive work being delivered and accelerated within Future Sheffield to support the both the MTFS and the broader Council ambitions     12.2 RESOLVED UNANIMOUSLY: That Strategy and Resources Policy Committee:-       (a) notes the current financial position, including the financial drivers and the link between the Medium Term Financial Strategy (MTFS) and Future Sheffield to address these;   (b) approve the Medium Term Financial Strategy (MTFS) 2026/27 – 2029/30 as set out in this report, in Appendix 1 and summarised in Annex A;   (c) notes the MTFS budget gap stands at £69.6m by 2029/30, an increase of £17.3m compared to the MTFS published in March 2025;   (d) notes this adverse movement is mainly the result of expanding the MTFS period to include 2029/30 and increased demand pressures in social care services totalling £62.2m. These are significantly offset by the inclusion of the savings identified within the Future Sheffield Programme of £44.9m;   (e) note for consideration the key assumptions applied in determining the updated MTFS budget gap as set out in Annex B of this report;   (f) endorse the proposed approach to ensure the financial sustainability of the Council over the medium term;   (g) approves the recommended proposed changes that will take place across each layer of the Target Operating Model (TOM) under Future Sheffield, and the associated benefits and risks, as set out in Appendix 2;   (h) accepts the detailed update on progress of the Future Sheffield Transformation programme including the financial and non-financial benefits identified to date; and   (i) approves the proposed next steps for Future Sheffield to progress with the implementation of the Target Operating Model (TOM) and the delivery of benefits.     12.3 Reasons for Decision     12.3.1 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.     12.4 Alternatives Considered and Rejected     12.4.1 The Sensitivity Analysis within Annex C sets out what might be the result of changes to the assumptions applied in our MTFS planning. Accepted assumption are based on stress testing by business strategy and financial professionals within the council to arrive at our best estimates.