Alterations to lists: matters not to be taken into account in valuation
Revaluations allow the rateable value of a hereditament, and therefore rate bills, to be updated to reflect changes in economic factors, market conditions or changes in the general level of rents. Between revaluations, the determination of rateable values can only be changed to reflect "material changes of circumstances" including, for example, physical changes to the property or the locality.
	During the coronavirus pandemic, the VOA received a large number of checks (a prerequisite to challenging rateable values) arguing that interventions concerning the use of property (such as requirements to close businesses or to maintain social distancing to comply with health and safety legislation) were a material change of circumstance.
	Matters such as the impact on rental values of coronavirus or interventions in response to coronavirus are part of the general market conditions and, as such, should where necessary be reflected in updated rateable values at revaluations and not through material change of circumstances challenges to the rating lists. Therefore, the Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Act 2021 ensured that, with retrospective effect, coronavirus and the government’s response were not a material change of circumstance. The government has instead provided support to ratepayers affected by coronavirus through business rates relief.
	In the consultation on more frequent revaluations in July 2021, the government announced it was reviewing more widely when the material change of circumstances provisions would apply to ensure they reflected the scope of their original intention. The Final Report of the Business Rates Review announced that the government would legislate to clarify that factors arising from legislation, regulations, licensing changes, or guidance are not in scope for material change of circumstances claims in relation to England. The Act implements this measure.
	Further details on the reform of the material change of circumstances rules were included in the technical consultation of November 2021 and then included in this Act. The reform of the material changes of circumstances rules will not prevent matters such as changes in legislation ever being reflected in rateable values – they will merely ensure that these matters are only reflected at revaluations. The government, in the Final Report of the Business Rates Review, decided against any further restriction on material changes of circumstances than those now included in the Act.