{meta} Agenda for Lead Member for Finance and Support Services Briefing on Thursday, 6 January 2022, 9.00 am

Agenda and decisions

Venue: Microsoft Teams Meeting. View directions

Contact: Carol Eddleston 

Items
No. Item

1.

Apologies for Absence

2.

Declarations of Interest

3.

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

3a

Precept Payment Schedule 2022/23 - David Eden 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 City Council constitution do hereby approve that the payment of precepts in 2022/23, 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:

                                        Wednesday                    20 April 2022

                                        Friday                            20 May 2022

                                        Monday                          20 June 2022

                                        Wednesday                    20 July 2022

                                        Monday                          22 August 2022

                                        Tuesday                         20 September 2022

                                        Thursday                        20 October 2022

                                        Monday                          21 November 2022

                                        Tuesday                         20 December 2022

                                        Friday                            20 January 2023

                                        Monday                          20 February 2023

                                        Monday                          20 March 2023

 

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 obtained: yes

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 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.

 

3b

Calculation of Tax Base for Tax Setting Purposes 2022/23 - David Eden pdf icon PDF 252 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 City Council constitution do hereby:

 

Approve in accordance with the Local Authorities (Calculation of Council Tax Base) (England) Regulations 2012, the amount 71,905 calculated by Salford City Council as its council tax base for the financial year 2022/23.

 

The Reason is that the council is required to calculate the council tax base for 2022/23. 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 2022/23, 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 DLUHC 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.

Uncertainty due to Covid-19 has presented additional risks to the accuracy of the tax base figure. However, the overall risk is still considered to be low because:

·       The Collection Fund is monitored regularly and this has shown the impact of Covid-19 to be less severe on both the collection rate and the cost of the CTR scheme than originally forecast.

·       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. 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  ...  view the full decision text for item 3b

3c

Council Tax - Collection Fund Estimated Fund Balance Calculation 31 March 2022 - David Eden pdf icon PDF 154 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 City Council constitution do hereby approve that a surplus of £3.697m be declared as the estimated Collection Fund balance as at 31st March 2022 in respect of council tax.

 

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.

 

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 2021/22. Any actual surplus or deficit at that stage will be factored into future estimated balance calculations.

 

The source of funding is: a £3.697m surplus declared as the fund balance means that distributions will be made to the council’s General Fund and GMCA in relation to their police, fire and rescue and general mayoral responsibilities in 2022/23.

 

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. 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.

 

3d

Business Rates - Collection Fund Estimated Fund Balance Calculation 31 March 2022 - David Eden pdf icon PDF 164 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 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  ...  view the full decision text for item 3d

3e

Sundry Debt Write-off Q3 - Chris Hesketh pdf icon PDF 138 KB

Decision:

Salford City Council - Record of Decision

 

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

Approve the write off of Sundry Debt to the value of £62,945.89.  The Reasons are that these sundry debts , after exhaustive attempts to collect, are found to be irrecoverable for a variety of reasons e.g. liquidation, absconded, no longer trading, bankrupt, deceased, uneconomical to collect, and irrecoverable after court action etc .

Options considered and rejected were - Not relevant due to the nature (age and value) of these accounts. The majority of accounts relate to those proven uneconomical to collect, irrecoverable after court action, bankruptcy / liquidation..

Assessment of Risk - Low

The source of funding is the Council’s bad debt provision.

LEGAL IMPLICATIONS: Supplied by – legal advice has been obtained on each of the individual cases where court action has been taken.

FINANCIAL IMPLICATIONS: Supplied by - Chris Hesketh

There is adequate cover for the sundry debt write-offs proposed in this report in the council’s provision for bad debt. Setting a provision that is prudent, but not excessive, is a component of the council’s financial strategy. The provision is reviewed on an annual basis to ensure that it is set at an appropriate level.

PROCUREMENT IMPLICATIONS: Supplied by – Not applicable

HR IMPLICATIONS: Supplied by – Not Applicable

CLIMATE CHANGE IMPLICATIONS: Supplied by – Not Applicable

OTHER DIRECTORATES CONSULTED: Directorates are consulted on specific write-offs where appropriate.

 

The following documents have been used to assist the decision process - The relevant documents contain exempt or confidential information and are not available for public inspection. The background documents would provide the identity of individuals or companies involved in the write off.

Contact Officer:       Chris Hesketh                   Tel No 0161 793 2668

 

*    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.

 

4.

Exclusion of the Public

5.

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