The property industry has reacted with dismay following the Government’s decision to scrap the Valuation Office Agency (VOA), which as an ‘arm’s length’ organisation has several key roles within the housing market.

Its work is to be incorporated into HMRC, its parent department, as part of Labour’s ongoing attempts to make the Government more ‘agile’ largely by cutting the number of so-called ‘quangos’ that help run the country.

The VOA’s key role has been to assess commercial buildings including estate agency branches and head offices for business rates.

But it also determines what is a ‘fair rent’ when tenants take landlords to a property tribunal and helps the Office for National Statistics create the Government’s monthly rental price index.

It also advises the Department of Work and Pensions on how to set its controversial Local Housing Allowance data.

But Labour believes this work is duplicated in other areas of Whitehall and that scrapping it will make those paying business rates face a less complicated process.

“We are determined to reduce the hassle of the tax system for British businesses and taxpayers,” says Exchequer Secretary to the Treasury, James Murray.

“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.”

Sad day

But one property firm, Colliers, is less upbeat about the VOA’s demise. Its Head of Business Rates, John Webber, says it’s a “sad day for those within the VOA who still possess an independent mind and view”.

“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.”

Quangocracy

The Taxpayers’ Alliance, which has been conducting a long campaign to rid government of organisations like the VOA, has welcomed the announcement but with caveats.

“Abolition of the Valuation Office Agency gives the appearance of a government that is at least in principle serious about tackling the quangocracy,” says spokesperson Darwin Friend.

“However, what is likely to happen is that the functions of this body and its quangocrats will simply be absorbed into HMRC – another quango.

“Given that HMRC can barely deliver its own responsibilities, taxpayers will be deeply sceptical that they will see an improvement in services.”