'Significant deterioration' in council finances

Sheffield City Council says it is facing a budget gap of £20m

Sheffield City Council has warned of a "significant deterioration" in its finances as it faces a £20m budget gap.

Key services under ongoing pressure include adult and children's social care, SEND home to school transport and homelessness.

The council has made savings of £4.6m, a report said, but states "persistent budget overspend continues to pose a significant challenge".

Philip Gregory, the authority's finance director, wrote: "The financial environment for local government remains highly challenging, with the council continuing to experience considerable pressures due to sustained demand for core services, increased costs and constrained funding."

The previous forecast overspend was £28m, but the council said it had taken "robust and focused actions" and was confident the overall overspend will be reduced to below £20m by the end of the financial year.

The report adds: "Nevertheless, this still represents a significant deterioration in the council's financial position since the summer.

"As well as bearing down on demand pressures, it is essential we avoid making new financial commitments outside of this year's budget planning process."

A six-month restriction on recruitment is in place to help contain immediate staffing costs and give the council time to reassess its workforce in the longer term.

Damp and mould

Non-essential spending is now "tightly controlled" across the council, it said, including travel, conferences, meeting room hire, subscriptions, catering, hospitality, advertising and office improvements.

This has saved £175,000 within two months, the authority said.

Services putting significant pressure on the budget included adult social care, with the number of people being supported increasing from 7,527 to 8,455 since April 2021.

The council said it saw a recent spike in demand in children's services, with 16 additional children entering care in July.

Numbers have since stabilised, it added.

A comprehensive review of all support plans for children with disabilities is being conducted to ensure only necessary services are being delivered.

In the housing sector, "enhanced scrutiny" of services has resulted in reduced spending on temporary accommodation.

However, "significant budget pressures" were highlighted in repairs and maintenance, with new statutory requirements around damp and mould further increasing costs.

The council's finance committee will discuss the report at a meeting on 17 November.

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