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Framework review of the Valuation Office Agency

Today the Financial Secretary to the Treasury, Stephen Timms, has announced that HM Revenue & Customs (HMRC) will be undertaking a framework review of the Valuation Office Agency (VOA). The review is intended to report by May 2009.

What is the Valuation Office Agency?

The VOA is an executive agency of HMRC. The agency was launched under the Next Steps initiative on 30 September 1991.

It values land and buildings for a variety of purposes and for a wide range of public sector clients in England, Scotland and Wales. Its main functions are:

  • compiling and maintaining lists of the rateable values of the 1.7 million non domestic properties in England and 100,000 in Wales
  • compiling and maintaining lists of council tax bandings of around 22 million domestic properties in England and 1.3 million in Wales
  • providing services to the Scottish Government and Welsh Assembly Government
  • providing valuation advice to HMRC in connection with Capital Gains Tax, Inheritance Tax and other compliance work
  • advising Ministers on property valuation matters
  • providing a range of non-statutory valuation and estate surveying services for government departments and the wider public sector

On 1 April 2009 The Rent Service moves from the Department for Work and Pensions to join the VOA.

The VOA has around 3,800 staff operating from 86 offices. It is self-funding, recovering the costs of the work it undertakes through charges to its clients.

Why are agencies reviewed?

The VOA is an executive agency of HMRC and its operational freedoms and wider relationship with HMRC are set out in a framework document. The current edition of the framework document was published in April 2005 following the last framework review 2004-05. The previous review, which reported in 2005, said that there should be a further review after three years, and this is in line with Cabinet Office guidance that agencies’ framework documents should be reviewed at approximately three yearly intervals and in line with business planning cycles.

The start of this review was announced 9 December 2008 and the intention is to complete the review by 31 May 2009.

The review will be conducted by HMRC with input from a steering group including representatives from the Valuation Office Agency, Communities & Local Government, HM Treasury and the Welsh Assembly Government.

The review team would welcome comments and contributions from those with an interest in the VOA and its work.

A questionnaire is available in Word format, for your comments. Please complete, save and email to VOA review

Or alternatively any written contributions should be sent to:

Karen Walker
Valuation Office Agency framework review
HM Revenue & Customs
Room 80
New Wing
Somerset House
Strand
London
WC2R 1LB

All contributions should be sent by 28 February 2009.

Terms of Reference for 2008 review of Valuation Office Agency (VOA)

Research

To identify all relevant stakeholders and invite written observations or responses on the performance of the agency in relation to:

  • customer service
  • efficiency and value for money
  • quality of delivery
  • input to the policy process
  • effectiveness of communications and customer engagement
  • use of information technology
  • staff development and motivation
  • quality and effectiveness of management and leadership

To review and analyse such published material about the agency as may be readily available and which has a bearing on the aspects of its performance identified above.

To establish the extent to which the recommendations made in the course of the 2005 review have been acted on and obtain explanations for any actions not having been completed.

Using all of the above data together with such other information as is required.

Prior options

To assess the extent to which the activities of the VOA continues to support the objectives of its:

  • sponsoring Department, HM Revenue & Customs (HMRC)
  • principal Government customers, in particular Communities & Local Government, and the Welsh Assembly Government, and from April 2009 the Department for Work and Pensions
  • wider customers

If so, whether there are more effective delivery options for those activities.

And if an agency remains the best delivery mechanism, whether HMRC is the most appropriate Departmental sponsor.

Evaluation

To assess the agency’s track record in:

  • achieving its aims, objectives and priorities (as set out in the 2005 framework document and its annual forward plans)
  • achieving key targets in the years 2005-06 to 2008-09
  • identifying the causes of any shortfall

To evaluate whether the agency’s aims, objectives and priorities remain appropriate given the outcomes sought by clients and other stakeholders, or might be refined or improved.

To evaluate whether the agency’s strategies and investment plans for the future improvement of services are sufficiently robust and in line with the policy departments' business direction, obligations to Ministers, and achievement of relevant Public Service Agreements.

To evaluate the adequacy of the arrangements for flows of management information and advice to the parent department, other major customers, and Ministers.

To evaluate the adequacy of the arrangements for accountability and governance.

Framework

In the light of the evaluation and analysis of prior options, to consider what changes, if any are required to the VOA’s framework document and any relevant legislation.

Report

To make a report to the Financial Secretary to the Treasury by 31 May 2009 including any recommendations for change.