In a major shake-up of property taxation administration, the UK government has announced it will scrap the Valuation Office Agency (VOA) as an arm’s-length body, folding it back into HM Revenue & Customs (HMRC) by April 2026. The move has drawn criticism from industry experts, who warn it could erode trust in the business rates system.
The change comes as part of the government’s “Plan for Change” reforms, aiming to “cut red tape, make savings, and improve businesses’ experience of the tax system”. However, property professionals argue that losing the VOA’s independent voice risks undermining confidence in property valuations across the country.
VOA’s historic role set to change
The VOA, originally part of the Inland Revenue when formed in 1910, became a separate executive agency in 1991. Its work underpins the collection of over £60 billion in council tax and business rates each year, alongside providing commercial property valuation services to the public sector.
Announcing the move, the government stated the merger would “increase efficiency, business experience and ministerial accountability,” promising an upgrade to the customer experience and a “reduction in time spent managing taxes” for businesses navigating the reformed business rates system.
Yet for many, the decision signals a significant loss of independent oversight at a time when the property sector, particularly retail and hospitality businesses, need it most.
Concerns from property experts
John Webber, Head of Business Rates at Colliers, did not mince his words when responding to the government’s announcement. He 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.”
Webber continued, highlighting the potential knock-on effects for those reliant on fair business rates: “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.”
In a stark warning for landlords and businesses alike, Webber added: “This is also another blow to UK plc, including retail and hospitality businesses trying to get a sensible answer on business rates. For ratepayers across the country the computer is ‘going to say no’ even louder!”
The absorption of the VOA into HMRC could have tangible consequences for landlords and property owners who rely on a fair and independent assessment of property valuations for business rates and council tax.
