Steps Required to Move to a Three Yearly Cycle
Following on from the consultation on revaluation frequency earlier this year the conclusion document sets out the steps that will be implemented to support this change:
New Notification Requirements and Compliance Regime
Ratepayers will be required to notify the VOA of changes to the occupier or physical property characteristics, and to provide rent and lease information to the VOA, as well as trade information used for valuation.
These changes, which are subject to further technical consultation are intended to help increase the quantity and quality of information provided to the VOA. Following concerns raised in the consultation responses the Government “will look to ensure that ratepayers can engage with these duties in a light touch and minimally burdensome way”. These duties will be phased-in during the course of the 2023 list and we await more detail.
The Government advises that a “fair and proportionate” compliance regime will be introduced. This will include penalties for non-compliance, including provision of false information as well as failure to comply with a “light touch” annual confirmation requirement. Initial entry to the appeals system and phase 2 of transparency (see below) will also be made conditional on compliance with the duties.
Removal of the Check Stage
In order to simplify and speed up the appeals process, the Check stage will be removed from Check, Challenge, Appeal from the outset of the 2026 list but will remain in place for the 2023 revaluation. This phasing-in will allow time for the new duties, which replace the functionality of Check, to be introduced and for ratepayers to become familiar with them.
New 3 month Time Limit for Challenges from 2026
To ensure that all Challenges can be cleared within the life of the list, a 3-month window for submission of Challenges will be introduced. The Challenge window will be introduced at the outset of the 2026 list, and will not be employed for the 2023 list
This was one of the more controversial elements of the consultation on revaluation frequency and without wider changes to the challenge process this will place an unfair burden on ratepayers.
Statutory Deadline for VOA to Resolve Challenges
From the 2026 list, the end of each list will be set as the statutory deadline for the VOA to resolve Challenges (except those arising from changes between revaluations), helping to ensure that Challenges are resolved within the life of each list, rather than overrunning into subsequent lists, as is currently common.
Material Change of Circumstances
To ensure that the Material Changes of Circumstances (MCC) provision remains fit for purpose, and that usage remains within the original intentions of the provision, the government will legislate to clarify that factors arising from legislation, regulations, licensing changes, or guidance are not in scope for MCC claims. Reflecting responses to the consultation, the government will not restrict MCC claims any more widely than the above areas at this time.
This measure follows on from the ongoing legislation to rule out the impact of Covid 19 MCC appeals.
Greater Transparency
To provide greater transparency on valuations, meeting an important stakeholder ask, the government will introduce increased transparency in two phases (timings are indicative, and subject to change):
- Phase 1: Release of improved guidance covering rating principles and class-specific valuation approach, ensuring guidance is readily accessible and ratepayer-friendly. Phase 1 is expected to be implemented before the 2023 list.
- Phase 2: Making available fuller analysis of rental evidence used to set an RV for a specific property, such as analysed price per m2 , and an explanation of how the evidence has been used to arrive at the RV. This would be accessible on request to the VOA, and ratepayers would be able to submit this request separately from and prior to the Challenge process. Phase 2 is expected to be implemented for the 2026 list.
Transitional Scheme
There were wide calls from businesses to remove transition and in particular downwards transitional adjustments going forward. In the conclusions the Government acknowledged these calls but considers that a transitional scheme should be maintained going forward albeit with further consultation during 2022.