The government body responsible for calculating council tax and business rates is to be scrapped in the latest move to cull quangos and cut costs.
The Valuation Office Agency (VOA) will be disbanded as a standalone division and the majority will be merged within the Treasury by April next year, according to the Government.
The VOA is a so-called quango – a quasi-autonomous non-governmental organisation – or arms-length body within the government which is responsible for valuing properties and supporting the collection of more than £60 billion in council tax and business rates each year.
It also provides commercial property valuation services to the public sector.
The Government hopes the move will help save between 5% to 10% in VOA running costs by 2028/29.
It will also “improve the experience of taxpayers and businesses by cutting the time spent managing taxes and upgrading the customer experience during the transition to a reformed business rates system”, according to the Treasury.
But the decision comes ahead of a major reform of the business rates system next year, with plans to level the playing field between high street and online businesses.
James Murray, Exchequer Secretary to the Treasury, said: “We are determined to reduce the hassle of the tax system for British businesses and taxpayers.
“Ending the inefficiency and duplication of a standalone VOA will help us drive change faster and improve value for money.”
It comes after the decision last month to abolish NHS England – dubbed the “world’s largest quango” by the Government – to save at least £500 million a year.
The axing of NHS England could see half the workforce of NHS England and the Department of Health and Social Care cut.
Prime Minister Sir Keir Starmer has said he wants to reduce the number of quangos to reduce red tape and a bloated state.
The Government is reviewing hundreds of quangos as part of this aim to “rewire Whitehall for a more agile state”.
The decision to ditch the VOA was announced as part of the Government’s tax update published on Monday, including 41 measures to reform and simplify the tax and customs system.
