A multi-million pound overspend was predicted by a Sheffield City Council report yesterday amid increased concerns for for its future.
The report forecasts an overspend of £14.2m in the 2018-19 financial year.
In order to run a balanced budget as the law requires, the Council will have to dip into reserves in order to finance key services.
The overspend is largely driven by spending on social care but other factors, such as spending on elections, have contributed.
The report drew comparisons between Sheffield and Northamptonshire County Council, which was declared bankrupt earlier this year.
Cabinet Adviser for finance, Mark Jones, said: “With the £150 million pressures that we face over the next five years, even given the Hancock monies, we as a Council will not fall off a cliff until maybe 2024. Come 2024 we turn into the Tory Council of Northamptonshire.”
Hancock monies are funds from central government designated to help Councils fund social care, however these have failed to prevent the Sheffield Council from being out of pocket.
Coun Jones added: “In five years times we can no longer sustain this. We will be gone.”
The current overspend is £750,000 less than was forecast earlier in the year.