The end of April saw the announcement of a major shake-up to the Valuation Office Agency. The Exchequer Secretary to the Treasury, James Murray, unveiled the government’s plans to scrap the Valuation Office Agency (VOA), an arm’s length body, and bring its functions into HM Revenue & Customs (HMRC). This is part of the government’s wider move towards reviewing numerous arm’s length organisations to slash bureaucracy and “rewire Whitehall to be more productive and agile”. The government estimates that this will lead to savings of 5 – 10% in the VOA’s administrative costs by 2028-2029.[1] The decision to move the VOA in-house follows shortly after the government’s announcement in March to abolish the “world’s largest quango” - NHS England, and bring it back into the Department of Health and Social Care.[2]

The VOA, as an executive agency of HMRC, is responsible for many important functions, such as:

• compiling and maintaining the rateable value lists for around 2.1m commercial properties for business rates purposes;
• compiling and maintaining lists of Council Tax band lists for around 26.8m domestic properties;
• advising ministers on valuation matters;
• deciding appeals against the Community Infrastructure Levy; and
• providing independent and impartial valuation and surveying services to various public sector organisations.[3]

The role of the VOA is undoubtedly significant not least due to its role in supporting the collection of over £60bn in business rates and Council Tax each year. The government hopes that its decision to move the VOA in-house will reduce the time spent in dealing with taxes and therefore improve the experience for taxpayers and businesses alike.

Exchequer Secretary to the Treasury, James Murray has stated: “We are determined to reduce the hassle of the tax system for British businesses and taxpayers. Ending the inefficiency and duplication of a standalone VOA will help us drive change faster and improve value for money.”[4]

For the commercial property sector, it will be interesting to see how the business rates regime will be impacted, specifically the administrative processes for thousands of businesses, including declarations and payments of business rates. At the time of writing, the government is yet to announce detailed plans for implementing these changes. If moving the VOA in-house does achieve the intended efficiencies and cost savings, this will no doubt be welcomed by the commercial property sector and businesses generally.

[1]Valuation Office Agency scrapped in government drive to slash inefficiencies - GOV.UK

[2]World’s largest quango scrapped under reforms to put patients first - GOV.UK

[3]About us - Valuation Office Agency - GOV.UK

[4]Valuation Office Agency scrapped in government drive to slash inefficiencies - GOV.UK