By Martha Hobby.

Sheffield City Council has approved a council tax rise, which it says will help it to regain financial security and improve local services. 

The 4.99 per cent rise is the largest it can increase without the need of a local referendum. 

Labour representative and chair of the council’s financial committee, Coun Zahira Naz, spoke at a Town Hall meeting last week.

She said: “For the past 14 years, local government has been battered by austerity, year after year councils across the country have faced funding cuts that have pushed services to the brink.

“This year we have received a better-than-expected local settlement with £17.4 million in extra funding providing some much-needed breathing space.”

In the year 2024-2025, council tax made up nearly 15 per cent of Sheffield City Council’s gross annual income, generating £243 million annually. In the coming financial year this is set to be £301 million as a result of the tax increase. 

Councillor Naz said: “Let’s not pretend it undoes the years of financial strain on the council, but it does allow us to make decisions which will help protect the services that people rely on.” 

The reaction to the tax rise has been varied, with some Sheffield locals furious about the council’s decision.

One told ShefLive: “At the end of the day it’s less money in my pocket, I don’t believe they’ll improve services, it’s only a lie they tell us to take more money, it’s a shame because not enough funding has been given to local governments, and we are having to pay for the mismanagement.” 

Others however believe that the tax is an overdue increase and should meet inflationary rates, due to the rise in cost of living.

The council tax rates households will pay for 2025/26:

Band A: £1,352.66

Band B: £1,578.10

Band C: £1,803.55

Band D: £2,028.99

Band E: £2,479.88

Band F: £2,930.76

Band G: £3,381.65

Band H: £4,057.98