In a significant shake-up of the UK’s business rates system, the Government has announced that the Valuation Office Agency (VOA) is to be scrapped as part of wider reforms to improve efficiency, transparency, and accountability in the management of non-domestic property taxation.
This news comes amid ongoing criticism of the Check, Challenge, Appeal (CCA) system, which has long been criticised by ratepayers and property professionals alike for being slow, opaque, and overly complex.
Adam Barnfield, Head of Business Rates at Vail Williams, explores what will change and the potential impact this will have on businesses, in the biggest single shake up of business rates for many years.
Business rates to move ‘in-house’
The Government’s proposal, set out in its recently published reform agenda, will see the functions of the VOA either absorbed into central government under HM Revenue & Customs or potentially restructured under a new framework.
While the exact operational model has yet to be confirmed, the aim is to streamline the administration of business rates, improve response times, and enhance fairness in the system.
The current CCA process, introduced in 2017, was intended to simplify appeals.
However, it has instead led to lengthy delays, inconsistent outcomes, and growing frustration among ratepayers – particularly small businesses and property occupiers.
Adam explains: “We welcome the Government’s decision to overhaul the VOA. For years, we have voiced concern that the current appeals process is not fit for purpose, often leaving clients in limbo and undermining trust in the fairness of the business rates system.
“However, we are also cautious about what comes next. The VOA’s existing structure, while flawed, is underpinned by deep technical expertise in valuation – expertise that must not be lost in any transition to an in-house model. The experience and professionalism of VOA personnel who are qualified surveyors, will be vital to any future system’s success.”
What does the announcement mean for businesses?
While the full implications of this reform will unfold over time, businesses can expect the following:
- Potentially quicker resolution of business rates disputes, once a new framework is operational.
- A move towards greater transparency and accountability, particularly in how rateable values are assessed and reviewed.
- Short-term uncertainty as the new structure is developed and implemented.
- A likely need for continued professional business rates advice and representation during the transition period.
“This is a pivotal moment for business rates reform. We sincerely hope the removal of the VOA paves the way for a more responsive and transparent system, with meaningful engagement between ratepayers and government. As ever, the devil will be in the detail, but in the meantime, we remain here to support our business rates clients as the system transitions.”
Vail Williams’ business rates experts are committed to supporting businesses through the business rates process – whatever the future structure may be. We will continue to advocate for a system that works for occupiers and landlords alike, underpinned by fairness, expertise, and efficiency.
