Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment the Valuation Office Agency has made of the potential impact on small businesses of reclassifying flexible workspaces as single hereditaments for business rates purposes; and whether this assessment included the effect on eligibility for Small Business Rates Relief.

HM Treasury Ministers and officials have regular discussions with representatives from the Flexible Space Association and the wider serviced office sector to understand the impact of business rates on the sector.

The Valuation Office (VO) is responsible for valuing non-domestic property for business rates purposes. They are required to maintain accurate rating lists in England and to carry out valuations impartially and in line with relevant legislation and caselaw.

At this time, there is no sector-wide review of serviced office assessments underway. The VO is addressing properties where they have received legal advice, or where unit of assessment issues are brought to its attention.

Where the VO is required to determine the unit of assessment, it does so on a case-by-case basis, with all facts being considered. Reviewing a small number of cases will help clarify the application of legislation on serviced offices and the VO will continue to monitor legal developments and update its approach as needed.