Why scrapping the VOA isn’t real reform

The Government’s recent decision to scrap the Valuation Office Agency (VOA) announced as part of a broader effort to slash inefficiencies is not the overhaul that the business rates system truly needs.

As someone who has worked in the field of commercial property for decades, I know that advisers and industry professionals have been lobbying for meaningful business rates reform for over 25 years. Replacing or restructuring the VOA is not the answer. It’s a sticking plaster on a system that desperately needs a long-term strategic rethink.

There is hope that by moving the VOA into HM Revenue & Customs, the Government will create a more transparent and efficient process for challenging rateable values. However, the cynic in me suspects this change is more about cutting overheads than driving real reform.

What the business rates system really needs

This was a missed opportunity to address the core flaws in the business rates system. Rates are currently calculated based on a hypothetical rental value, not the business activity taking place. As a result, you could have a thriving e-commerce business operating from a garden shed paying very little in business rates, while a vacant warehouse or struggling independent retailer pays disproportionately high sums.

What we urgently need is a fairer, future-proofed tax system. One that better reflects the realities of modern business, supports our high streets and encourages growth rather than penalising it.

A fairer future for commercial property owners

At Innes England, we regularly see the impact of unfair rateable values on commercial property owners and occupiers across the Midlands. From small independents to large warehouse operators, too many are left burdened by outdated assessments that don’t reflect the modern business environment. Rather than administrative reshuffles, the focus should be on ensuring the system is responsive, accurate and truly reflective of how commercial property is used today.

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