The body that values properties for council tax and business rates is to be scrapped as part of the government’s drive to cut red tape.  

The Valuation Office Agency will be merged into its parent department HMRC by next April, with Labour saying the move is part of its push to “slash red tape, increase oversight and ministerial accountability and rewire Whitehall to be more productive and agile”. 

The government has pledged to cut business red tape costs by a quarter over this parliament. 

The Valuation Office Agency helps collect £60bn in council tax and business rates each year, and also provides commercial property valuation services to the public sector. 

Labour says the move is expected to deliver between 5 to 10% of additional savings in administrative costs by 2028-29. 

Exchequer Secretary to the Treasury James Murray (pictured) says: “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.”

Also, as part of a series of measures to simplify the tax system, the Treasury says it will increase the threshold value for capital expenditure value of on land, buildings and civil engineering work from £250,000 to £600,000. 

Earlier this month the Cabinet Office wrote to all government departments asking them to “justify every quango” under their wings “otherwise they’ll be closed, merged, or have powers brought back into the department”.  

These measures are being overseen by the Chancellor of the Duchy of Lancaster Pat McFadden. 

Last month, the health department announced that NHS England would be brought back under its administration “to put an end to duplication”. 

Also, in March, Prime Minister Keir Starmer announced that the Payment Systems Regulator will be abolished and rolled into the Financial Conduct Authority.