{meta} Decision - Business Rates - Collection Fund Estimated Fund Balance Calculation 31 March 2020.

Decision details

Decision status: Recommendations Approved

Is Key decision?: Yes

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 Council Constitution, do hereby approve that:


(1) a £2.001m surplus be declared as the estimated Collection Fund balance as at 31st March 2020 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 2020/21 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 31 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 seventh year of the BRRS and third 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 2019/20. The difference between the actual surplus or deficit at that stage will be factored in to future estimated balance calculations.


Financial Implications: A £2.001m surplus declaration as the fund balance means that additional distributions will be made to the council’s general fund and GMCA (fire) in 2020/21.


The source of funding is: Revenue resources


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 and appeals information from the valuation office agency. 


Contact Officer:  David Eden             Tel No. 0161 793 3228


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 Hinds                                       Dated: 6th January 2020    

Lead Member for Finance & Support Services





This decision was published on 6th January 2020.


This decision will come in force at 4.00 p.m. on 13th January 2020, unless it is called-in in accordance with the Decision Making Process Rules.


Publication date: 06/01/2020

Date of decision: 06/01/2020

Decided at meeting: 06/01/2020 - Lead Member for Finance and Support Services Briefing

Effective from: 14/01/2020

Accompanying Documents: