Barclay Implementation: A consultation on non-domestic rates reform

Current legislation determines that all lands and heritages are subject to assessment for rates unless specifically excluded by legislation or case law. Any new or unoccupied building is therefore subject to rates assessment regardless of whether it is a new build or unoccupied. Accordingly, the practical application of the growth accelerator must ultimately be a function of the local Council and not the Assessor.

Notwithstanding the above, the Board would request that the legislation is clear and unambiguous in its intent as this is key to ensuring consistency of approach and would assist in minimising any disputes which may arise.

The Board accepts there may be a positive impact for ratepayers moving from a 5 to a 3 year cycle along with the change to the tone date from 2 years to 1 year prior to the revaluation, this allows the valuation roll to be more current and respond to changes in the property sector through a more frequent cycle of revaluations.

The effect of this in terms of numbers of non-domestic subjects to be valued is very significant if looking over the next 15 years, for example. Currently the Assessor in Ayrshire would value circa 15,000 subjects 3 times in the next 15 years meaning a total of 45,000 discreet values need to be produced over this period. With the move to a 3 year cycle of revaluation this would mean over the same 15 year period the Assessor would need to produce 75,000 discreet valuations, which is an increase in workload of 66%. This has to be considered against a background of a decrease in the number of staff employed by the Board. For the Board to continue to deliver its services incorporating the new 3 yearly revaluation cycle suitable personnel must be recruited as soon as possible as it takes some time to train and develop personnel in order that they are effective in dealing with all the nuances of rating etc.

To assist staff working to achieve the above, inward investment will be essential in ICT. The investment in ICT requires to be started now as any changes to systems needs to be thoroughly tested and examined to ensure the system is suitable and it represents best value for the Board. The Scottish Government need to ensure that sufficient funding is available to the valuation authorities in order to meet this necessary requirement well ahead of 2022.

There are further complications as we will be out of line with England and Wales in the revaluation cycles s they have changed their timetable, with their next revaluation in 2021 as opposed to here in Scotland where the revaluation date is 2022. The effect of this is that our current partnership working, where we harmonise and share information with our colleagues in England and Wales will no longer be available or be of limited use. This will put additional strain on already limited resources.

Accordingly, the Scottish Government needs to ensure the Board(s) is/are adequately resourced for these major changes. Resourcing requires to be started at the latest in 2019/20 to allow the Board to meet these challenges with a commitment going forward that these increased costs will be met now and in the future.

The Board is responsible for the corporate and administrative side of the valuation process. It therefore has no view on any pilot exercise to consider increasing rates paid by out of town or predominantly online businesses. These are matters outside the Board's remit.

The Board is responsible for the corporate and administrative side of the valuation process. It therefore has no view on the criteria and process which should be used to assess any pilot scheme. These are matters outside the Board's remit.

The Board understands the current powers given to the Assessor are inadequate as Procurator Fiscals have limited or no resources to deal with the non-return of information to Assessors. It is clear these gaps in information can lead to the Assessor having to revisit valuations once information is available, which wastes time and the resources of the Board.

The Board has no view on the administration of penalties and appeals, other than to ask, if this was the route taken by government, then an effective system must be developed to ensure the Assessor has access to all the information she requires which would contribute to reducing the demands placed on already limited resources. The net effect may minimise demands on the Assessor and the three constituent authorities charged with collecting the revenue from non-domestic rates.

The Board believes that Assessors should be given sufficient powers to obtain all necessary information so that disputes, and this demands on the Board's resources are minimised.

For example the Board believes that the powers of the Assessor should include the ability to seek all relevant documents and information in the following instances;
* For the purposes of valuing lands and heritages other than lands and heritages of which the person is proprietor, tenant or occupier.
* From any person who holds, or has access to, any relevant information other than the proprietor, tenant or occupier. This will, for example, include contractors, architects, surveyors, solicitors, accountants, agent's advisors etc.
* From any proprietor, tenant, occupier or any person who has, or has had, an interest in a lands and heritage.

A new civic penalty for non-provision of information to Councils by ratepayers should be created.

The Board is responsible for the corporate and administrative side of the valuation process. It therefore has no view on any possible future civil penalty for non-provision of information to Councils. These are matters outside the Board's remit.

The Board is responsible for the corporate and administrative side of the valuation process. It therefore has no view on the level of penalty for non-provision of information to Councils. These are matters outside the Board's remit.

The Board is responsible for the corporate and administrative side of the valuation process. It therefore has no view on how any possible future civil penalty for non-provision of information to Councils be set. These are matters outside the Board's remit.

The Board is responsible for the corporate and administrative side of the valuation process. It therefore has no view on how any possible future civil penalty for non-provision of information to Councils be administered and any process for appeals against any penalty notice. These are matters outside the Board's remit.

The Board is responsible for the corporate and administrative side of the valuation process. It therefore has no view on how debt recovery changes should be communicated to ratepayers. These are matters outside of the Board's remit.

The Board is responsible for the corporate and administrative side of the valuation process. It therefore has no view on whether Councils should retain discretion over debt recovery. These are matters outside of the Board's remit.

The move to transfer the functions of the current Valuation Appeal committees (VACs) to the Scottish Tribunals in 2022 is welcome as the current arrangements of funding is unsatisfactory. The proposal for the outcome of an appeal to increase as well as decease the rateable value of a property is noted and the Board has no view on how this should be communicated to ratepayers beyond commenting that the messaging needs to be clear and direct to avoid confusion and this enquiries from ratepayers that would in turn impact on the resources of the valuation authorities and Assessors.

The Board is responsible for the corporate and administrative side of the valuation process. It therefore has no view on the General Anti Avoidance Rule. This is outside of the Board's remit.

The Board is responsible for the corporate and administrative side of the valuation process. It therefore has no view on how the Councils should raise awareness of any proposed change to the current 42 day reset period. These are matters outside of the Board's remit.

There are matters outside of the Board's remit.

These matters are outside the Board's remit.

The Board is responsible for the corporate and administrative side of the valuation process. It therefore has o view on the treatment of independent schools with exceptional circumstances. These are matters outside of the Board's remit.

The Board is responsible for the corporate and administrative side of the valuation process. It therefore has no view on how Council's should focus relief on economically active properties.

The Board is responsible for the corporate and administrative side of the valuation process. It is therefore has no view on how Councils should focus relief on economically active properties. These are matters outside of the Board's remit.

The Board is responsible for the corporate and administrative side of the valuation process. It therefore has no view on how affordable/community sport facilities be defined. These are matters outside of the Board's remit.

The most important element here is for clear and unambiguous legislation,. if this is achieved then the change in approach will be dealt with quicker and will require less resources.

Possibly outwith the remit of the question but significant for the Board/s, is the cost to implement any change in legislation. Again this must be adequately funded by he Scottish Government timeously to allow recruitment of appropriate staff. With an undertaking from government that funding will be available now and in the future.