The government has said it will “scrap” the Valuation Office Agency, folding its operation into HM Revenue & Customs over the next year in an efficiency drive.
The agency, responsible for valuing properties for council tax and business rates, supports the collection of £60bn in council tax and business rates each year, as well as providing commercial property valuation services to the public sector.
Bringing it into HMRC is expected to deliver between 5% and 10% of additional savings in administrative costs by 2028-29.
James Murray, exchequer secretary to the treasury, said: “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.
Responding to the announcement, John Webber, head of business rates at Colliers, said: “In reality the VOA has not been independent or arm’s length for years, and this move is just confirming what we have known – that the role has become more politicised. This is disappointing when there is a recognised and actual need for a properly independent view.”
“While the VOA has been criticised for many years, this is still a sad day for those in the VOA who still possess an independent mind and view. Those individuals doing this role paid by HMRC will now well have their professional integrity called into question.
“This is also another blow to UK plc trying to get a sensible answer on business rates.”
©Adobe Stock
Send feedback to Tim Burke
