{meta} Agenda for Lead Member for Finance and Support Services Briefing on Tuesday, 5 January 2021, 2.15 pm

Agenda and decisions

Contact: Claire Edwards 

Items
No. Item

1.

Apologies for absence.

2.

Declarations of interest.

3.

Items for Decision (Part 1 - Open to the Public):

3a

Precept Payments 2021/22. pdf icon PDF 136 KB

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 that the payment of precepts in 2021/22, should be made in twelve equal instalments on the 20th of each month (or on the first working day thereafter if the 20th falls on a weekend or on a bank holiday) as follows:

 

Tuesday                     20 April 2021

Thursday                   20 May 2021

Monday                      21 June 2021

Tuesday                     20 July 2021

Friday                        20 August 2021

Monday                      20 September 2021

Wednesday               20 October 2021

Monday                      22 November 2021

Monday                      20 December 2021

Thursday                   20 January 2022

Monday                      21 February 2022

Monday                      21 March 2022

 

The Reasons are that the Council is required to agree with precepting authorities a schedule of instalments each year for payments from the Collection Fund to those authorities.

 

Options considered and rejected were - n/a – the dates are in accordance with the general agreement across Greater Manchester Authorities.

 

Assessment of Risk: Low

 

The source of funding is - n/a

 

Legal Advice: n/a

 

Financial Advice obtained - yes

 

Procurement Advice obtained n/a

 

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

  • Local Authority (Funds) (England) Regulations 1992

 

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

 

 

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.

 

3b

Council Tax - Calculation of Tax Base for Tax Setting Purposes 2021/22. pdf icon PDF 253 KB

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.

 

 

3c

Council Tax - Collection Fund Estimated Fund Balance Calculation 31 March 2021. pdf icon PDF 174 KB

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 that an adjusted deficit of £3.352m be declared as the estimated Collection Fund balance as at 31st March 2021 in respect of council tax. The estimate includes one third of the calculated “exceptional balance” of £8.562m which is to be spread equally over the next three financial years.  

 

The Collection Fund regulations require a local authority to estimate the balance on its Collection Fund as at 31st March each year by 15th January and to notify each precepting authority. Any such balance is to be distributed to/borne by the council and the Greater Manchester Combined Authority (GMCA in relation to their police, fire and rescue and general mayoral functions) in proportion to the value of their respective demand and precept.

 

New regulations have been introduced for calculating the 2020/21 estimated outturn position due to the impact of Covid-19 on the Collection Fund. If a fund deficit is forecast for 2020/21 then the financial impact of this is required to be spread over the next three financial years rather than just the next one.

 

Options considered and rejected were – other estimated balances based on a variety of collection rates modelled to assess the likely impacts on the Collection Fund balance.

 

Assessment of Risk: Low – the Collection Fund is closely monitored during the year and will be reviewed at outturn 2020/21. Any actual surplus or deficit at that stage will be factored into future estimated balance calculations.

 

The source of funding is - a £3.352m adjusted deficit declared as the fund balance means that contributions will be required from the council and GMCA in relation to their police, fire and rescue and general mayoral responsibilities in 2021/22.

 

Legal Advice obtained: yes

 

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 council tax system reports, the Local Authorities (Funds) (England) Regulations 1992 and the Local Authorities (Collection Fund: Surplus and Deficits) (Coronavirus) (England) Regulations 2020.

 

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.

 

 

3d

Business Rates - Collection Fund Estimated Fund Balance Calculation 31 March 2021. pdf icon PDF 190 KB

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 that:

 

(1) an adjusted deficit of £37.573m be declared as the estimated Collection Fund balance as at 31st March 2021 in respect of the business rates retention scheme. The estimate includes one third of the calculated “exceptional balance” of £19.273m which is to be spread equally over the next three financial years.

 

(2) delegated approval be granted to the Chief Finance Officer to approve the business rates estimate for 2021/22 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.

New regulations have been introduced for calculating the 2020/21 estimated outturn position due to the impact of Covid-19 on the Collection Fund. If a fund deficit is forecast for 2020/21 then the financial impact of this is required to be spread over the next three financial years rather than just the next one.

 

Options considered and rejected were - n/a – the calculation is a statutory requirement.

 

Assessment of Risk: Medium – it is the eighth year of the BRRS and fourth 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. This volatility has only increased due to the ongoing impacts of Covid-19 on the economy. 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 2020/21. 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 £37.573m adjusted deficit declared as the fund balance means that contributions will be required from the council and GMCA (fire) in 2021/22. £31.138m of the adjusted deficit relating to extended retail relief and nursery discount will be covered by government funding.

 

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  ...  view the full decision text for item 3d

4.

Exclusion of the Public.

5.

Items for Decision (Part 2 - Closed to the Public): No Items.