Official Statistics

Release notes

Published 27 November 2014

1. Non Domestic Rates (Business Rates): Local Rating Lists Experimental Statistical Release

2005 and 2010 Local Rating Lists, England and Wales Release Notes Released: 27 November 2014 Next Release: May 2015 Frequency of release: Twice yearly (May and November) Coverage: England & Wales

This document provides detailed information on the statistics included in this release.

2. Summary

The Valuation Office Agency is responsible for compiling and maintaining the valuations used to set and collect non-domestic rates, for each rateable property (also known as ‘hereditament’) in England and Wales.

This release provides information on the Valuation Office Agency’s workload, which covers challenges received by taxpayers or their agents who think the rating list is incorrect, and reports which are raised primarily by the Valuation Office Agency, or by Local Authorities, which are designed to maintain and update the rating list. This release also provides information on the outcome of challenges (in terms of whether there has been a change to a property’s rateable value).

The majority of the VOA’s current day-to-day workload on non-domestic rates relates to the list published in 2010. However, because there remains outstanding challenges against the list published in 2005 this release also includes statistics on that element of the workload.

These statistics cover only the local rating list, and so exclude the central rating list which contains rating assessments for network property of major transport, utility and telecommunications undertakings, as well as cross-country pipelines. The vast majority of rateable value (around 95 per cent) is in the local rating list.

2.1 2010 Local Rating Lists In summary

In summary, at the 30th September 2014:

• 674,000 challenges have been received against the 2010 local rating lists in England and Wales, since the list was published on 1st April 2010;
• 51,000 of those were received in the previous six months (between 1st April 2014 and 30th September 2014).
• Of the challenges received in England and Wales against the 2010 lists, 560,000 have been resolved.
• 69,000 of those were resolved in the previous six months (between 1st April 2014 and 30th September 2014).
• There were 114,000 challenges outstanding for England and Wales. This is the lowest number since June 2010.
• Of those resolved over the lifetime of the local rating lists to date 72 per cent have resulted in no change in rateable value.

2.2 2005 Local Rating Lists

In summary, at the 30th September 2014:

• The Valuation Office Agency (VOA) has resolved 932,000 challenges against the 2005 local rating lists (for England and Wales)
• 2,000 of these were resolved in the previous six months (between 1st April 2014 and 30th September 2014).
• There were 4,000 challenges outstanding for England and Wales.
• Of the challenges to the 2005 local rating lists that have been resolved, 63 per cent have resulted in no change.

3. About this release

This is the latest experimental statistical release on non-domestic rates (also known as business rates) at the end of September 2014. The release includes statistics on formal challenges and reports made against properties in both the 2005 and 2010 local rating lists. These are shown at quarterly intervals and are broken down to national, regional and local authority geographies.

This publication does not include statistics on formal challenges and reports made against the central rating lists (see Glossary for more information).

The first part of the release (Tables denoted with a prefix A ) illustrates the VOA’s day-to-day rating workload. It includes counts of formal challenges and reports received, resolved and unresolved for each financial quarter from the start of both the 2005 and 2010 local rating lists to the end of September 2014 (the 2005 local rating list represents figures from 1st April 2005 and the 2010 local rating list represents figures from 1st April 2010). It also includes counts of properties which have been the subject of formal challenges and/or reports.

The second part of the release (Tables denoted with a prefix C) includes regional and national statistics on settlements of formal challenges and Lands Tribunal cases made against the 2005 and 2010 local rating lists throughout the life of the lists.

Counts are rounded to the nearest ten with counts larger than 0 and smaller than 10 reported as negligible and denoted by ‘-‘. Totals may not sum due to rounding. Statistics are derived from data for England and Wales extracted from the VOA’s administrative database as at 30 September 2014.

4. Experimental’ statistics

This publication has been labelled as “experimental” consistent with the UK Statistics Authority guidance on new statistical outputs. This helps users to identify those new Official Statistics that are undergoing evaluation and where we are actively inviting feedback on their usefulness. Comments, which will help inform future releases, may be sent to [email protected].

The “experimental” classification should not be interpreted as a qualifier of the content itself: all the statistical tables released are based on sound methods and assured quality, consistent with the Code of Practice for Official Statistics. However, during the “experimental” period the VOA will continue to develop the publication, and so the presentation and content is liable to change. Content may be added to or replaced by equivalent statistics if other forms are found to be more useful or reliable.

5. Background Notes

Valuation Officers in England and Wales are required, by the Local Government Finance Act 1988 (The Local Government Finance Act 1988 can be found at: http://www.legislation.gov.uk/ukpga/1988/41/contents), to compile and maintain rating lists specifying a rateable value for all non-domestic rateable properties.

These rateable values provide the basis for national non-domestic rates bills, which are issued by local authorities. The current local rating lists came into effect on 1 April 2010 and are based on values of rateable properties as at 1 April 2008. The previous lists came into effect on 1 April 2005 and were based on values of rateable properties at 1 April 2003. New local rating lists are typically compiled every five years containing updated rateable values, although the next revaluation will take place in 2017.(Further information on this postponement can be found at: (https://www.gov.uk/government/speeches/business-rates–3)

Occupiers, owners, and in limited circumstances, relevant authorities and other persons (known collectively as Interested Persons) can make a formal challenge to alter the local rating list if they think an entry in the local rating list is incorrect. Formal challenges can also be made on behalf of interested persons by agents. There are a number of specified grounds for formal challenges including physical changes such as demolition, reconstitution, refurbishment or new construction of premises, as well as proposals on the grounds that the rateable value is incorrect.

This formal challenge, known as a “proposal” at this stage, asks the valuation officer to change the entry in the list. If the valuation officer cannot reach agreement with the ratepayer as to any change that is needed, then the matter will be referred to the Valuation Tribunal Service, at which stage it becomes an “appeal”. Lands Tribunal cases are appeals against the decision of the valuation tribunal, to the Upper Tribunal (Lands Chamber) or the Court of Appeal:

• a Land Tribunal appeal can be made by any of the parties to the case – so the VOA or the Interested Person, or both, may be the appellant.
• where the Land Tribunal appeal is dismissed the list will not be altered as a consequence.
• where the Land Tribunal appeal is not dismissed but overturns the previous decision appealed against and simply restores the original list entry this effectively means that taken together, those appeals have resulted in no net list alteration.

6. Scope of data

This publication covers statistics on formal challenges - proposals to change an entry in a local rating List - raised by ratepayers or agents acting on their behalf (known as interested person proposals, or IPPs), as well as changes made as a result of information provided by Local Authorities (Billing Authority Reports, or BARs) or collected by the VOA itself (Valuation Office Reports, or VORs).

Within this publication a case is counted as being received when an appeal or report has been registered on the Valuation Office Agency’s administrative system. A case is counted as being resolved when the case has been closed and the local rating list has been updated where appropriate.

This publication includes statistics on formal challenges and changes separately by ‘effective date’ and ‘processing date’ (or actual date of alteration when an appeal has resulted in a change to the list). The effective date refers to the first day on which an entry in a rating list has effect for rate charging purposes, which could be many months (or even years) before the formal challenge is received or processed.

Statistics on an effective date basis - rateable value of changes and formal challenges resolved - are always liable to revision for as long as maintenance work is being carried out on the local rating list. Therefore all of these statistics should be considered as provisional.

7. Data Quality

The information supplied in the tables is based upon administrative data held within the VOA’s operational database. All administrative data are subject to processing and system errors and as such while the VOA has made every effort to ensure accuracy of the data underpinning this publication it is possible that some errors remain.

8. Use made of the data

This publication is being released as part of a drive towards making VOA’s data more accessible as well as continuing to improve and make more consistent presentation of information to assist users to conduct their own analysis of VOA data. The data are used to inform government policy and conduct analyses to support the operations of the VOA.

In a wider context this publication supports local authorities’ requirements for information in respect of the Business Rates Retention Scheme contained within the Local Government Finance Act 2012, (The Local Government Finance Act 2012 can be found at: http://www.legislation.gov.uk/ukpga/2012/17/contents).

9. Glossary

Assessment – an entry in the Rating List is often referred to as an assessment.

Area code – a unique identifier for administrative geographies as specified by the Office for National Statistics (ONS).

Billing authority – a local authority empowered to collect non-domestic rates on behalf of itself and other local authorities in its area. In England, shires, metropolitan districts, the Council of the Isles of Scilly, unitary authorities, London boroughs and the City of London are billing authorities.

Billing authority Code – a unique identifier for billing authorities.

Billing Authority Report (BAR) – amendments to the rating lists that are made as a result of a Report originated by the Local Authority. These could typically be attributable to a demolition, new property build or other physical change to a property.

Cancelled case or challenge – a case raised against a property in error that is cancelled.

Central Rating list – the Valuation Office Agency’s list of rateable values for companies named in the Central Rating List Regulations 2005, primarily for the network property of major transport, utility, and telecommunications undertakings and cross country pipelines. There are separate lists for England and Wales.

Compiled List – The Rating List as it comes into effect following revaluation, for the 2010 rating list this is 1 April 2010.

Direction - the Tribunal’s written instructions that the appellant and the VOA must follow.

Hereditament – a property, which is or may become liable to NNDR, and thus appears in the rating list, compiled and maintained by valuation officers of the Valuation Office Agency (VOA) of HM Revenue and Customs. The area of a property included in a rateable value. This can cover all of one property, only part of a property or be several separate units in one building or site.

Interested Person Proposal (IPP) – a proposal to change an entry in the Rating List - raised by ratepayers or agents acting on their behalf.

Invalid Proposal (IP) – a proposal that has been submitted to the VOA and that the VOA considers to be incorrect. In these circumstances the VOA informs the maker of the proposal why they consider the proposal to be invalid. The maker of the proposal has the option to appeal to the Valuation Tribunal against the VOA’s decision.

Formal challenge – a formal proposal by the ratepayer to alter the rating list entry; typically attributable to a challenge to the assessed rateable value or a change of circumstance of the property as well as physical changes in the locality. Formal challenges consist of both Interested Person Proposals (IPPs) and appeals. (IPPs are commonly – though mistakenly – referred to as appeals; technically a challenge only becomes an appeal when the proposal is referred to the Valuation Tribunal Service.)

Land Tribunal Case – include any appeal to the Upper Tribunal (Lands Chamber), Court of Appeal and Supreme Court.

Local Rating List(s) – the Valuation Office Agency’s lists of all the non-domestic hereditaments in England and Wales. There is a separate local list for each Billing Authority.

Minor rating list change (MRL) – a minor change to a rating list entry usually correcting a typographical error in the address or description of a property.

National non-domestic rates (NNDR) – the means by which local businesses contribute to the cost of local authorities’ services, although their level is set by central government. They are also known as “business rates.”

Rateable Value (RV) – a monetary value assigned to every hereditament within a rating list, based broadly on the annual rent that a hereditament could have been let for on the open market at a set date.

Ratepayer – The person required to pay the business rates bill for the property. This is the occupier, unless the property is empty when it is the owner’s responsibility

Region – a geographical unit formerly referred to as Government Office Region (GOR). The GOR framework was the primary classification for regional statistics and comprised nine regions of England, which combined with the devolved administrations collectively spanned the United Kingdom. From 1 April 2011 the term GOR was dropped in favour of region. This release comprises England regions plus Wales.

Settlement – when a case has been concluded following a proposal or appeal to change an entry in the Rating List.

Settlement Code – This code is held within the VOA’s operational database and shows how an appeal has been settled.

Struck out - the decision made by Valuation Tribunal not to hear an appeal and give no further consideration to the case. This is usually because of a failure of the appellant to comply with a direction of the tribunal such as the requirement to produce a statement of case six weeks prior to the Valuation Tribunal.

Upper Tribunal (Lands Chamber) – known more usually as Lands Tribunal (LT) is a specialist tribunal that resolves certain disputes concerning land, particularly the valuation of land. They have power to hear cases under many different Acts of Parliament and statutory instruments.

Valuation Officer Notice (VON) – the notice of alteration to the Rating List that arises when the VO amends a rating list following either a Billing Authority Report (BAR) a Valuation Office Report (VOR) or settlement of an Interested Person’s Proposal (IPP).

Valuation Office Report (VOR) – an amendment to the rating lists that is made as a result of a Report originated by the Valuation Office. These could typically be attributable to a demolition, new property build or other physical change to a property.

Valuation Officer – an employee of the Valuation Office Agency and the officer authorised by statute to compile and maintain rating lists.

Valuation Tribunal Service (VT) - an independent appeals tribunal, to handle council tax and rating appeals in England with a similar but separate Valuation Tribunal in Wales.

A list of these and other terms relating to the non-domestic rating lists is available on the Valuation Office Agency website at the following location: http://www.2010.voa.gov.uk/rli/static/HelpPages/English/glossary/index.html

10. Further information

For further information please contact the VOA statistical team via email at [email protected].

This release can be found at the following location on the VOA website: http://www.voa.gov.uk/corporate/publications/statisticsCentralLocalRating.html

Timings of future releases are regularly placed on the Agency’s website at the follow location: https://www.gov.uk/government/statistics/valuation-office-agency-statistics-timetable

Further information on the area codes used in this release please refer to the ONS’s website at the following location: http://www.ons.gov.uk/ons/guide-method/geography/geographic-policy/best-practice-guidance/presentation-order-guidance/administrative-areas/index.html.

11. CSV Metadata

Below is a brief explanation of variables provided in the CSV files. The following table provides the variable names and descriptions appearing on the CSV files included in this release – the table numbering will identify what statistics are contained in the table

Variable	Description	Tables A1.1-A3.6	Table C1
BA_CODE	Unique identifier for billing authorities.	X
ECODE	Unique identifier for administrative geographies as specified by the Office for National Statistics (ONS).	X	X
AREA	Administrative area name.	X
REGION	Region		X
COMPILED	Data relating to the compiled list.
Y_yyyyyy_Q_q_	yyyyyy represents the financial year and q represents the relevant financial quarter.	X
SET_WTN	Withdrawn		X
SET_CON	Confirmed at Valuation & Lands Tribunals		X
SET_DIS	Dismissed by Valuation & Lands Tribunals		X
SET_STU	Struck out by Valuation Tribunal		X
SET_AGR	Agreed		X
SET_WFD	Well founded		X
SET_DEC	Decision by Valuation & Lands Tribunals		X
SET_TTL	Total Challenges Resolved		X
SET_TTL_CHA	Total Challenges resolved resulting in a change to the List		X
SET_TTL_CHA_PER	Percentage of Challenges resolved resulting in a change to the List		X
SET_TTL_NOCHA	Total Challenges resolved resulting in no change to the List		X
SET_TTL_NOCHA_PER	Percentage of Challenges resolved resulting in no change to the List		X