Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps he is taking to help improve the transparency of the work of the Valuation Office Agency.

Under the Local Government Finance Act 1988, the VOA has a duty to maintain a Rating List for each Billing Authority. In doing so, it assesses non-domestic properties to determine the Rateable Value (RV) of each. The RV represents the annual rent a property would achieve if let on the open market at a valuation date which is set in law.

The Government’s Review of Business Rates sought views on ways in which the valuation system for business rates could be improved. As set out in the Government’s 2021 Interim Report, there was strong support for retaining the existing basis of RV.

The Government’s final report concluded its review of the business rates system, committing to greater transparency for ratepayers in two phases.

The first phase sought to deliver more transparent guidance for customers and agents, to support a clearer understanding of how valuations are reached. These changes were delivered ahead of the April 2023 commitment, and included improvements to online guidance and advice.

The second phase will ensure further transparency for ratepayers, providing more details of how the rateable value is calculated earlier in the process.

The VOA recently consulted stakeholders on this issue, presenting several options for how greater transparency might be achieved, balancing the need for additional disclosure against the need to protect data and confidentiality. The consultation invited responses from a broad range of ratepayers and representative groups. The Government is currently analysing the feedback received.