Sheffield council wants maximum 4.99% tax rise

Sheffield City Council is planning to raise tax by the maximum amount of 4.99% from April.

A council meeting was told even though the government was providing more financial support for local authorities, it still had to take "necessary steps to find efficiencies".

The proposed increase, which means Band D properties will see a rise of almost £240 a year, is the highest allowed without needing a local referendum.

The authority's finance director Philip Gregory said it was a "difficult decision" during the cost of living crisis.

The meeting heard the local government finance settlement had granted a "much-needed 9.4% increase in core spending power", which is a combination of council tax, business rates and other grants.

However, members were told the council was forecasting budget pressures of £71.7m, with £54m of that relating to social care services, the Local Democracy Reporting Service said.

According to the authority's calculations, increases in business rates income along with grants would generate £4.4m.

Taken alongside the proposed council tax rise, the authority said it meant Sheffield would have a balanced budget for 2025/26.

Councillor Zahira Naz, chairman of the finance committee, said the last decade had seen councils "dealing with a difficult financial situation", but the authority managed its budget "carefully and responsibly".

She said: "Our funding has been cut massively since 2010, prices have gone up and there is rising demand for the services that we provide.

"Despite those challenges, we are setting out plans for a balanced budget.

"The government is providing more financial support for councils, which is very welcome.

"We will continue to provide vital frontline services that the people of Sheffield rely on, while also taking the necessary steps to find efficiencies."

The meeting heard that the council still faced a £2m black hole due to the government's decision to increase national insurance.

Councillors are set to approve the tax rise at a budget meeting on 5 March.

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