Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what consultation (a) her Department and (b) the Valuation Office Agency undertook with the (i) flexible workspace sector and (ii) representatives of small businesses prior to concluding that most serviced offices should be assessed as a single property for business rates purposes.

Following developments in case law and legal advice, the VOA has reviewed its approach and concluded that most serviced offices will need to be assessed as a single property. The VOA has engaged with the sector and rating agents to discuss the approach to assessing serviced offices.

In line with legal obligations, the VOA is working through outstanding Checks and Challenges on serviced offices. For serviced offices that are new to the Rating List or subject to Checks and Challenges, the starting position is to treat them as a single assessment, unless there is clear evidence to support separate assessments. The VOA will apply the law to the facts on a case-by-case basis.