Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: Yes
Salford City Council - Record of Decision
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.
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.
This decision is not subject to consideration by another Lead Member.
FOR DEMOCRATIC SERVICES USE ONLY
This decision was published on 5th January 2021.
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