Missing Entries from the

Valuation Roll

David Magor OBE IRRV (Hons) Chief Executive

Institute of Revenues Rating and Valuation

In the Beginning

• In England

• Non Domestic Rate Retention Scheme

• Growth shared as well as risk

• Analyse

• Institute of Revenues Rating & Valuation

• Analyse Local developed

• To assist English local authorities to forecast risk and identify undervalued and missing properties

What Could Have Been Missing?

• 23 years of pooled non domestic rate

– No incentive to maximise income

– Non domestic rate became the Cinderella service

– Even though in England the Chief Financial Officer had a statutory duty

• Neglect was endemic

– Planning Consents not properly scrutinised

– Extensions and conversions not properly monitored

– Allowances not removed

How a RV Finder Service Works • We have created a rateable value finding service

with – Over 90 users – Identified £40m missing rateable value with potential

revenue in excess of £100m – £15m rateable value in the list (roll) already

• Use of the Analyse database – High level analytics – Targeted searches – Scheme watch – Comparison – Valuation history

• Over 40 other data sources • Targeted aerial photography • Teams of analysts based in Manchester

A Former Airfield in Herefordshire

Buildings on Agricultural Land

A Car Showroom

A Timber Yard

Temporary Allowances at a Seaside Resort

A Major Office Block in Central London

Business Rates Incentivisation Scheme

• Introduced in 2012 revised in 2014 • Retained Benefits • Each local authority that exceeds its individual local buoyancy

calculated target would retain a 50 per cent share of the additional rates income generated (where there was a corresponding increase in rateable value), with the Scottish Government would retain the other 50 per cent excess.

• Those local authorities that did not reach their target will continue to be compensated by the Scottish Government up to the level of their agreed published distributable amount of NDRI for the year in question through increased General Revenue Grant.

• Any benefits gained would continue to be retained until the end of the Review Period assuming the additional rates income also continued during that period.

Todays Challenge

• With a degree of trepidation!

• Based on the best evidence publically available

• Chosen at random, before I saw todays delegate list

• I welcome your feedback

• David.magor@irrv.org.uk

• What if we are right?

The Way Forward?

• Innovative use of Software

• Utilising data intelligence

• Specific independent analysis

• Aerial photography

• Address and mapping matching, and

• Significantly – Contingency based

– Self financing

• Benefits Local Government and the Scottish Government!