4.99% rise to council tax bills in Sheffield moves a step closer
Households can expect to pay at least an extra £1.30 a week - once the budget is approved next month
Last updated 24th Feb 2026
Sheffield council tax payers can expect to see a 4.99% increase in their bills from April, which is the maximum rise allowed by the government.
Most households on the lowest council tax Band A can expect to pay an extra £1.30 a week. The eight council tax bands are based on a historic market value figure for homes, dating back to 1991.
The rise was approved yesterday (February 23) by Sheffield City Council’s strategy and resources policy committee. It will now be put forward for final agreement by a full meeting of the council next Wednesday (March 4).
A report to the committee, presented by director of finance, commercial and performance services Philip Gregory, said the council has identified £141.5m of cost pressures on its £699.1m budget for 2026/27. These “are driven primarily by rising demand for services and continued cost inflation, particularly within social care.
“Adult health and social care alone accounts for £91.2m of these pressures,
reflecting sustained growth in demand, increased complexity of need and
inflationary uplifts to care fees and staffing costs.
“Significant pressures also remain within education, children and families, particularly in relation to SEND provision for children wth special educational needs and disabilities, home to school transport and children’s social care
placements.”
The report states: “To balance the 2026/27 budget, the council must deliver £23.3m of savings. These include £12.9m of business‑as‑usual savings and £10.4m of Future Sheffield savings, with Future Sheffield focused on transforming how the council operates and improving efficiency and early intervention.”
Mr Gregory also pointed to “successive years of insufficient funding” from central government. He said the latest three-year government settlement is helping to bridge that gap.
The council’s spending power will increase by 8.2% in 2026/27 and it will receive £29.4m of additional government funding.
It also expects £215.1m of income from business rates and associated grants. This is an increase of £9.9m compared to 2025/26.
The improved government settlement means that the council will not have to dip further into its reserves to balance the books.
The committee also approved increasing increased its council tax hardship fund by £200,000 to £2.8m in 2026/27. The fund provides additional
support to residents least able to afford the increase.
Coun Kurtis Crossthorn pointed to projects mentioned in the capital programme like new play equipment for Firth Park and Mosborough and improvements at Forge Dam.
“While it might be the council that’s helping deliver that, it’s really the communities that have driven it, and I really think that in a way we need to celebrate the community involvement in the work that we help deliver a little bit more.”
He said the tone of reports should be changed to reflect that, in line with the council’s new communities strategy which stresses working alongside people.
Coun Ben Miskell said that recent consultations show public support for air quality and public transport improvements, including next year’s bus franchising plan. This is spearheaded by South Yorkshire Mayor Oliver Coppard.
He referred to former Conservative Prime Minister Riski Sunak getting caught on camera in 2022 boasting that he was diverting public money from urban areas.
“He was very brazen about that. I guess now we’re seeing the reprioritisation of towns and cities like Sheffield, really to be welcomed.”
He asked Mr Gregory when work would start on a two-year budget, made possible by the government’s three-year financial settlement. Mr Gregory replied that it would start this spring, although budgets will still be approved annually.