{meta} Decision - Council Tax - Calculation of Tax Base for Tax Setting Purposes 2021/22.

Decision details

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: Yes

Decision:

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 in accordance with the Local Authorities (Calculation of Council Tax Base) (England) Regulations 2012, the amount 68,109 calculated by Salford City Council as its council tax base for the financial year 2021/22.

 

The reason is that the council is required to calculate the council tax base for 2021/22. This "base" figure, expressed as the number of band D equivalent properties in the city, is, for council tax purposes, a fundamental element in the tax-setting process.

 

Options considered and rejected were - other estimates to reflect changes in the next financial year.

 

Assessment of Risk: The Tax Base figure is fundamental to the setting of the council tax levy and hence to the whole budget process. Setting a tax base that is too low would prevent the council from drawing the full amount of tax collected from the collection fund in 2021/22, while setting a tax base that is too high would create a deficit in the collection fund. However, in normal years the exercise is regarded as low risk because: -

·         the starting figures are provided by the Valuation Office and a year on year comparison of figures is undertaken by the MHCLG and attention drawn to possible anomalies (if any);

·         the method of calculation is well-established and familiar, and figures are checked for "reasonableness" and their fit with expectations While an element of judgement needs to be made on future anticipated dwelling changes, these are based on research and information from other council sources.

In 2020/21, there are additional risks to the accuracy of the tax base figure because of uncertainty around the impact of Covid-19. However, the overall risk is still considered to be low because:

·         We have sought to factor in additional risks within the CTR and proposed collection rate assumptions.

·         Any differences between the assumed and actual council tax base will ultimately “unwind” through the statutory mechanisms for operating the collection fund.

 

The source of funding is - n/a.

 

Legal Advice obtained: yes

 

Financial Advice: report produced via the corporate accountancy team

 

Procurement Advice obtained: n/a

 

The following documents have been used to assist the decision process.

·         Local Government Finance Act 1992

·         The Local Authorities (Calculation of Council Tax Base) (England) Regulations 2012

·         LGA Finance circulars.

·         Various Working Papers in Corporate Services, Finance Division.

 

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: 5th January 2021

Lead Member for Finance & Support Services

 

FOR DEMOCRATIC SERVICES USE ONLY

 

This decision was published on 5th January 2021.

 

This decision will come into force at 4.00 p.m. on 12th January 2021, unless it is called-in in accordance with the decision-making process rules.

 

 

Publication date: 05/01/2021

Date of decision: 05/01/2021

Decided at meeting: 05/01/2021 - Lead Member for Finance and Support Services Briefing

Effective from: 13/01/2021

Accompanying Documents: