Valuation Office Agency cut in bid to make savings

The government has announced plans to bring the Valuation Office Agency (VOA), the arm’s-length body (ALB) responsible for valuing properties for council tax and business rates into its parent department HM Revenue & Customs (HMRC) by April 2026.

The move follows the announcement last month that NHS England will be brought back into the Department of Health and Social Care (DHSC).

The VOA’s work supports the collection of over £60 billion in council tax and business rates each year, and also provides commercial property valuation services to the public sector.

It is hoped that the move will improve the experience of taxpayers and businesses by cutting the time spent managing taxes and upgrading the customer experience during the transition to a reformed business rates system.

The plan is for the majority of the VOA’s functions to be brought into HMRC by April 2026, and this is expected to deliver between 5 to 10 per cent of additional savings in VOA administrative costs by 2028-29.

Meanwhile, 39 measures to reform and simplify the tax and customs system have been announced.

This includes cutting red tape for small businesses by simplifying VAT administration through changes made to the VAT Capital Goods Scheme.

The government will bring forward legislation to remove computer equipment from the Scheme’s qualifying assets.

Exchequer secretary to the treasury, James Murray, said: "We are determined to reduce the hassle of the tax system for British businesses and taxpayers. Ending the inefficiency and duplication of a standalone VOA will help us drive change faster and improve value for money.

"This government is determined to make public services more productive, helping to deliver our Plan for Change and put more money in peoples’ pockets."