In a bold step to streamline government operations and deliver better value to taxpayers, the Valuation Office Agency (VOA) which used to be part of Inland Revenue until the early nineties, will be fully merged into their parent department, HM Revenue & Customs (HMRC) by April 2026. The move was published by the government on 28th April and forms part of a broader push to simplify tax administration.
This decision, announced as part of the government’s Tax Update: Simplification, Administration and Reform (TUSAR), is the latest in a string of reforms targeting Arm’s-Length Bodies (ALBs). Following last month’s move to bring NHS England under the Department of Health and Social Care, the VOA—responsible for valuing properties for council tax and business rates—will now be brought closer to the heart of government.
The VOA currently aids in the collection of council tax and business rates which amounts to over £60 billion annually, whilst also providing commercial property valuation information to the public. According to Exchequer Secretary to the Treasury, James Murray, the merger is expected to cut VOA administrative costs by 5–10% by 2028–29 and will eliminate duplication, drive faster reforms, and improve the service overall for taxpayers and businesses. With the hope to improve the customer experience as we move to a reformed business rates system.
This reform will also reinforce HMRC’s three key priorities: enhancing customer service, closing the tax gap, and modernising its systems.
The TUSAR package includes 39 measures aimed at cutting red tape and simplifying the tax system in order to make it more up to date and effective. With the modernisation of the business rates system being a key focus in recent years, this move is expected to accelerate progress and support meaningful reform.
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