Paragraph 1 F1

A billing authority’s exceptional balance is calculated as follows—

where—

• A is the billing authority’s estimated surplus (expressed as a positive amount) or deficit (expressed as a negative amount) for the preceding year, calculated in accordance with paragraph 1(1) of Schedule 4 as if the billing authority were not subject to paragraph 1B of Schedule 4;

• B is the billing authority’s prior year balance, calculated in accordance with paragraph 2 of this Schedule;

• C is the amount of relevant rates relief awarded by the billing authority in the preceding year in accordance with paragraph 3.