Content

Salford
City Council - Record of Decision
 
I,
Councillor Jack Youd, Lead Member for Finance, Support
Services and Industrial
Relations, in exercise of the powers contained within the Council
Constitution, do
hereby:
 
Approve
that a £1.826m surplus be declared as the estimated
Collection Fund balance as at
31st March 2024 in respect of the business rates
retention scheme.
 
Grant
delegated approval to the Chief Finance Officer or deputy to
approve the business rates estimate for 2024/25 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 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: Medium – it
is the eleventh year of the BRRS and seventh of the 100% rates
retention pilot. The potential cost of appeals and list amendments
is still an extremely volatile area and could continue to have a
substantial impact on the ultimate balance. However, some detailed
historical evidence has been gathered which does provide some
reassurance as to the accuracy of certain assumptions made in the
estimate. The Collection Fund will continue to be closely monitored
during the year and will be reviewed at outturn 2023/24. 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 £1.826m surplus declared as the
fund balance means that distributions will be made
to the council’s General Fund and GMCA (fire) in
2024/25.
 
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.
Any surplus or deficit estimated
by an authority under Regulation 13(1) shall belong to or be borne
by that authority, the Secretary of State and any relevant
precepting authorities.
 
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.
Various reports and papers
including business rates system reports, the Non-Domestic Rating
(Rates Retention) regulations 2013 and appeals and list amendments
information from the valuation office agency.
 
Contact Officer:
 David Eden    Tel No. 793 3228       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:
5th January 2024
Lead Member for Finance, Support Services and Industrial
Relations
 

 
This decision was published on
5th January 2024.
 
This decision will come into force at
4.00 p.m. on 12th January 2024, unless it is called-in in accordance with the
decision-making process rules.