More frequent revaluations and duties to provide information
Liability for business rates is based upon the rateable value of the hereditament which, broadly speaking, is its annual rental value. Rateable values are set independently of the government by the VOA and appear on non-domestic rating lists. There is a rating list for each billing authority and a central rating list held by the Secretary of State (typically containing network hereditaments which span many billing authority areas). The process of compiling new rating lists is known as a revaluation.
	Between 1990 and 2010, new rating lists were compiled every five years to allow the VOA to update rateable values to reflect changes in the rental market. Due to the economic downturn of 2012, the 2015 revaluation was postponed to 2017 in both England and Wales to give businesses certainty over their rates bills while the economy recovered. Following the 2017 revaluation, the Chancellor of the Exchequer, at the Spring Statement 2018, announced that the next revaluation would be brought forward from 1 April 2022 to 1 April 2021. However, to reduce the uncertainty for firms affected by the impacts of COVID-19, the government announced on 6 May 2020 that the revaluation would be postponed. The date of the next revaluation was subsequently changed to 1 April 2023, based on rents at a valuation date of 1 April 2021.
	During the Business Rates Review, an overwhelming majority of stakeholders supported a move to more frequent revaluations with a majority supportive of three-yearly revaluations11. The government considers that a shorter revaluation cycle represents an improvement to the fairness of the system, and its responsiveness to economic change. Therefore, in the Final Report of the Business Rates Review, the government announced that it would implement a three-yearly cycle for business rates revaluations in England starting from the next revaluation in 2023 – meaning the following revaluation would take place in 2026. The Act delivers upon this commitment.
	The consultation on more frequent revaluations in July 2021 set out a number of reforms necessary to support the implementation of a three-yearly revaluation cycle. In particular, the consultation considered new duties on ratepayers to notify the VOA of changes to the occupier or physical property characteristics and to provide rent, lease and, where relevant, trade and other information used for valuation purposes. Following consultation, the government confirmed in the Final Report of the Business Rates Review that the new duties would be taken forward with the aim of being implemented during the 2023 rating list and that they would be accompanied by a fair and proportionate compliance regime led by the VOA.
	Further details of how the duty and associated compliance regime should be delivered in England were set out by the government in the technical consultation in November 2021.
	The government’s approach to the duty has been to limit the obligations on occupiers so that only information which has changed and which could be relevant to the identification of ratepayers and valuation of properties for business rates needs to be provided. The duty will require ratepayers to take reasonable steps to find out what their obligations are under the duty (for example, by reading VOA guidance). In practice this approach ensures that the duty is tailored to the circumstances of each ratepayer and does not place unnecessary burdens on those with little to report. Ratepayers will need to sign up to an online service (or a paper-based alternative) through which they can provide their details and will be supported with detailed guidance. To support the efficacy of the new duty and ensure that the VOA has access to the information it needs early enough, the Act also introduces penalties for non-compliance in line with HMRC practice.
	The government’s technical consultation considered a wide range of views and a number of final decisions were made in light of these, captured in the summary of responses published at the 2023 Spring Statement. In relation to England, the government has opted to lengthen the amount of time ratepayers will have to notify the VOA of a change, and extend the window available to ratepayers to submit a Challenge against their rateable value from three to six months in the 2026 list. It has also committed not to introduce an additional obligation on ratepayers for an annual confirmation before it is satisfied that meeting that obligation will be straightforward. These measures are designed to support ratepayers to adapt to a shorter revaluation cycle and new ways of working, while ensuring the reforms remain deliverable.