The first of these two articles is from the Telegraph; the second is from City AM.
Government faces embarrassment over 'unworkable' business rates appeals system
The Valuation Office Agency is facing potential embarrassment over the new system for appealing business rates decisions, as its own figures reveal almost 90pc of users are dissatisfied with the process.
A Freedom of Information request made to the Valuation Office Agency (VOA) by consultant Colliers International found that of 847 respondents to a survey completed at the end of an appeal application, 72pc were “very dissatisfied” and 17pc were “dissatisfied”.
The figures are the first indication that the new system, which came into force on April 1, is proving confusing and frustrating for property owners - something experts had warned before it came into use.
In March, cross-bench peer John Lytton told the House of Lords that the new Check, Challenge, Appeal system involved "the most torturous" registration and had been designed to "prevent appeals".
Under a new “reasonable professional judgment” provision, ratepayers are not able to argue against a rates bill if its margin of error was inside 15pc.
The system also requires ratepayers to process each of their properties separately, which Colliers suggested could take weeks for some larger businesses.
Of 118 different comments from ratepayers on how the system could be improved which the VOA had also collected there were calls for greater simplicity and clarity, as well as information on previous valuations which would help with the process of appealing.
Respondents also complained that the search system did not work properly, that it was too slow, and said parts of the website were missing or not working.
John Webber, head of rating at Colliers International, said: “The Government ignored the advice of rating experts when it introduced Check, Challenge, Appeal - which we said was unworkable at the time - and despite our criticisms, rolled on ahead regardless.”
He added that there are about 300,000 outstanding appeals still in the system.
Colliers has joined forces with a number of other private sector ratings experts and surveyors to encourage businesses to lobby their MPs to get the systems improved.
Calls to improve the business rates system came as the Campaign for Real Ale (Camra) said the “sky high” charges are contributing to the 21 pubs which call last orders for the final time each week in the UK.
"Taxes now make up more than a third of the cost of a pub pint,” said Colin Valentine, Camra's chairman. “Despite the fact that pubs currently account for 0.5pc of turnover of the UK economy, they are still paying 2.8pc of the business rates.
"This is frankly unsustainable, and it is the consumer that will ultimately pay the price - whether it's when their beloved local closes down or when the price of their pint goes up.
"It's clear that most of us believe that pubs need our help and recognise the vital role that they play in local communities. Business rate relief is urgently needed in order to ensure their continued survival."
Business rate appeals: Agency calls in extra bodies to get on top of spiralling complaints
The agency charged with processing business rates appeals has been forced to ask for help as it grapples with spiralling numbers of queries and complaints.
The Valuations Office Agency (VOA) has drafted in help from the taxman in order to resolve problems in the service labelled as “not fit for purpose”, according to reports by the Sunday Times.
Meanwhile, research released today indicates 89 per cent of those using the VOA were either dissatisfied or very dissatisfied with the service.
The new business rates system came into force on 1 April and requires ratepayers to check the information held on the property by the VOA as the first step in the process. Multiple properties held in a portfolio must each be claimed separately and the identity of the rate payer must be proven with supporting documentation.
Analysis of comments obtained through a Freedom of Information Act request by property firm Colliers highlighted the need for greater simplicity and clarity in the system.
Colliers' head of rating John Webber said: "Reading through the responses it is obvious that businesses are confused and frustrated by this new system, which is clearly restricting business owners' rights to appeal. The government ignored the advice of rating experts when it introduced ‘Check Challenge Appeal’ which we said was unworkable at the time, and despite our criticisms, rolled on ahead regardless."
At the heart of the problem is a Valuation Office Agency that is under-resourced and shrinking with layoffs and the closures of regional offices becoming the norm.
A spokesperson for the VOA said: “The VOA’s check and challenge service is a new service that we are continuing to improve based on customer feedback. We are working closely with our customers and their representatives to understand and address any concerns, especially for businesses who own or occupy multiple properties.
“The new system allows businesses to resolve any issues at the right stage, reserving the appeal route for those that most need it, and saving them time and effort.”
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