{meta} Decision - Business Rates - Collection Fund Estimated Fund Balance Calculation 31 March 2022 - David Eden

Decision details

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: Yes


Salford City Council - Record of Decision


I Councillor Bill Hinds, Lead member for Finance and Support Services, in exercise of the powers contained within the City Council constitution do hereby approve that:


(1) a deficit of £12.244m be declared as the estimated Collection Fund balance as at 31st March 2022 in respect of the business rates retention scheme.


(2) delegated approval be granted to the Chief Finance Officer to approve the business rates estimate for 2022/23 and 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: that 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 were: n/a the calculation is a statutory requirement.


Assessment of Risk: Medium – it is the ninth year of the BRRS and fifth of the 100% rates retention pilot. The potential cost of outstanding appeals 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 2021/22. 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 £12.244m deficit declared as the fund balance means that contributions will be required from the council and GMCA (fire) in 2022/23. The impact of this on the authorities’ general funds will be more than offset by estimated government funding of £13.818m that is to fully compensate authorities for the cost of extended retail relief and nursery discount.

Legal Advice obtained: yes

Financial Advice obtained: yes

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, the Local Authorities (Collection Fund: Surplus and Deficits) (Coronavirus) (England) Regulations 2020 and appeals information from the valuation office agency.


Contact Officer:  David Eden             Tel No. 793 3228


*    This decision is not subject to consideration by another Lead Member      

*    The appropriate scrutiny committee to call-in the decision is the Overview and Scrutiny Board.


Signed: Councillor Bill Hinds       

Lead Member for Finance & Support Services

Dated: 6th January 2022


*         This decision was published on 6th January 2022

*         This decision will come in force at 4.00 p.m. on 13th January 2022 unless it is called-in in accordance with the Decision Making Process Rules.


Publication date: 06/01/2022

Date of decision: 06/01/2022

Decided at meeting: 06/01/2022 - Lead Member for Finance and Support Services Briefing

Effective from: 14/01/2022

Accompanying Documents: