The budget includes an approved 4.99% Council Tax increase for 2026/27, 2.00% of this increase is dedicated to help with the cost of care for older people.
Following the Government’s Fair Funding Review and the first multiyear settlement in a decade, Sheffield will see its Core Spending Power increase by 8.3% in 2026/27. This includes Government funding, Council Tax and business rates, and will mean an additional £29.4 million to help meet rising demand and pressures, particularly in adult and children’s social care.
How the Council has balanced the 2026/27 budget
To achieve a balanced financial position, the Council will deliver £23.3 million in confirmed savings, through service efficiencies and the Future Sheffield transformation programme.
As the Council’s major transformation programme, Future Sheffield is reshaping how services operate across the organisation, improving digital capability, simplifying how residents access services and placing a stronger focus on early intervention and prevention. This approach will help ensure the Council can continue delivering high-quality services for residents while responding to rising demand and financial pressures, improving the Council’s long-term financial sustainability.
The Council will also make targeted investments to meet rising demand. Funding for the adult care will increase by £52.8million, reflecting higher care needs. A further £23.8million will support children’s services, including SEND and home to school transport.
Residents, community organisations and local businesses helped shape the budget through the Council’s ‘Have Your Say’ consultation. More than 1,650 people responded, with a majority supporting the need to increase Council Tax to protect front-line services, alongside investment in children and young people, neighbourhoods and community infrastructure.
Sheffield City Council remains committed to delivering high quality services, investing in prevention and early help, and working with partners across the city to ensure a sustainable financial future.
Further details on the 2026/27 budget are available on the Council’s website.
The Full Agenda and supporting papers for the Budget meeting is HERE: Agenda for Council on Wednesday 4 March 2026, 2.00 pm | Sheffield City Council