Content

Salford City Council - Record of Decision
 
I,
Councillor Jack Youd, Deputy City Mayor and Lead Member for
Finance, Support Services and
Regeneration, in exercise of the powers contained within the
Council Constitution, do
hereby:
 

Approve that a £3.173m surplus be declared as
the estimated Collection Fund balance as at 31st March
2026 in respect of the business rates retention scheme.
Approve
that delegated approval be granted to the Chief Finance Officer or
deputy to approve the business rates estimate for 2026/27 and to
notify the respective amounts to be distributed to the council and
the Greater Manchester Combined Authority (GMCA) (in relation to
its fire and rescue functions).
 
The Reasons
are:
The Non-Domestic Rating (Rates
Retention) regulations 2013 provide for the operation of the rates
retention system through the council’s Collection Fund. They
require a local authority to estimate the balance on its Collection
Fund for the scheme as at 31st March each year and to
notify the government and each relevant precepting authority of the
amounts that have been calculated by 31st January in the
preceding year. As part of the Greater Manchester Trailblazer Deal
extension of the 100% rates retention pilot, any balance is to be
distributed to/borne by the council and GMCA (fire element) in the
following year based on the prescribed share for each.
 
Options considered and rejected: N/A
- the calculation is a statutory
requirement.
 
Assessment of Risk: Low
The
Collection Fund will continue to be closely monitored during the
year and will be reviewed at outturn 2025/26. The difference
between the actual surplus or deficit at that stage will be
factored into future estimated balance calculations.
 
The source of funding
is:
A £3.173m surplus declared as
the fund balance means that distributions will be
made to the council’s General Fund and GMCA (fire) in
2026/27.
 
Legal Advice
obtained: Jeanette Williams, Principal
Solicitor
The
Local Government Finance Act 1988 (as amended by the Local
Government Finance Act 2012) provides for the operation of the
non-domestic rates retention system through the Council's
Collection Fund. 

Regulation 13(1) of the Non-Domestic Rating (Rates
Retention) Regulations 2013 provides that a billing authority must
estimate, on or before the 31st January in the preceding year,
whether there is a surplus or deficit with respect to non-domestic
rates in its collection fund for the proceeding financial year, and
if so, the amount of that surplus or deficit.

Under the Greater Manchester Trailblazer Deal any
surplus or deficit estimated by an authority under Regulation 13(1)
shall be distributed to/borne by the council (99%) and GMCA (fire)
(1%) in accordance with the business rates retention scheme (BRRS)
during the course of the relevant year.
Non-compliance with the above statutory obligations may result
in central government intervention and trigger immediate spending
restraint and potential service cuts.
 
Financial Advice
obtained: The report is produced by the
corporate accountancy team.
 
Procurement Advice
obtained: n/a
 
The
following documents have been used to assist the decision
process:
The Non-Domestic Rating (Rates
Retention) regulations 2013.
 
Contact Officer:
 David Eden                                      
e-mail: david.eden@salford.gov.uk
 
 
This decision is not subject to
consideration by another Lead Member.
 
The appropriate scrutiny panel to call-in the decision is
the Overview and Scrutiny
Board.
 

 
Signed: Councillor Jack Youd       Dated: 06.01.26
Deputy City Mayor and Lead Member for Finance, Support Services
and Regeneration
 

 
This decision was published on
06.01.26
 
This decision will come into force at
4.00 p.m. on 13.01.26 unless it
is called-in in accordance with the decision-making process
rules.