The Finance Committee of Sheffield Council convened on Wednesday 19 June 2024 to discuss several key issues, including the approval of the capital programme for the upcoming fiscal year and the final out-turn position for 2023/24. The committee approved various changes to the capital programme and discussed the financial challenges facing the council, particularly in the areas of social care, homelessness, and education transport.

Capital Approvals for Month 1, 2023/24

Transport, Region, and Climate Change

The committee approved a contribution to a cycle hub at Meadowhall, delivered by Northern Rail, with an overall project cost of £150,000. Additionally, the budget for installing residential cycle parking was increased following a successful trial during the Crookes and Walkley active travel neighbourhood scheme.

Levelling Up Fund Castle Site

The initial allocation for the levelling up fund at the castle site was increased from £13.4 million to £19.6 million. The majority of this funding has been secured from gainshare funding from the combined authority, but an additional £1.7 million of levelling up funds will be needed. This may require seeking further funding for other works at the Market Tavern and Mudford site.

Community Parks and Leisure

An £86,000 grant was approved for the Sheffield and Rotherham Wildlife Trust as part of a species survival grant. Additionally, £70,000 was allocated for the Hanover multi-use games area, and the budget for the Milan Centre was reduced by £21,000 due to the centre being leased to another body for more significant upgrades.

Housing

An increase of £80,000 was approved for fire prevention works at the Manor Older Persons Independent Living site.

Education, Children, and Families

The committee secured an additional £230,000 from the Department for Education for improvements at Aldine House and approved a grant of up to £550,000 for Forge Valley School to expand places temporarily.

Strategy and Resources

Feasibility works were approved for water management issues at Hindwheel Dam at Rivelin, Endcliffe Park, and Crookes Valley Park. Additionally, the committee approved the installation of new LED lights at the Town Hall, funded by the government, which could save up to £50,000 a year.

UK Shared Prosperity Fund

The committee added the year two allocation to the low carbon fund, which provides grants to small and medium enterprises for carbon sustainability audits and interventions.

Final Out-turn Position for 2023/24

Revenue Budget

The council overspent by £15.6 million against a net revenue budget of £497 million, a variance of 3.1%. The overspend was primarily due to high costs in children's services, adult care, and homelessness. The council managed these overspends by drawing from reserves, which now stand at £27.6 million.

Capital Budget

The council achieved £179 million out of a year-end budget of £218 million. The major programmes affected by cost increases included the Council Housing Stock Increase Programme and the Levelling Up Fund. The committee discussed the challenges of delivering capital projects in the current economic climate, including supply chain issues and high demand for contractors.

Recommendations

The committee approved the carry-forward of unspent budgets from 2023/24 in three areas: £277,000 for local area committees, £70,000 for youth services training, and £899,000 for the market sustainability investment fund for care providers for adults.

For more detailed information, you can refer to the Minutes of Previous Meeting and the Public reports pack.