July 2018 – Letter from the President

Gordon's travels show no signs of abating as summer approaches

Dear reader,

May began with the postponed joint lunch of the Chartered Institute of Taxation (CIOT) and Association of Taxation Technicians (ATT) in Edinburgh.  I was pleased to be seated with a Member of the Scottish Parliament and to discuss current Scottish issues.

This was followed by a welcome break in my Presidential duties before a brief visit to Leeds for the first day of the IRRV Spring Conference, bringing together the former Welfare Benefits and Enforcement Conferences. I gave my presentation on tax avoidance before visiting the exhibition to be photographed on every exhibition stand.

The next day, Carla-Maria and I were preparing to head off to Estoril in Portugal for the European Valuation Conference and the Spring General Assembly of The European Group of Valuers’ Associations (TEGoVA). This now comprises 74 valuers’ associations from 37 countries, including the three latest new members.

The Assembly reminded me of the United Nations, with everyone seated behind a plaque showing their national flag and organisation.  On this occasion the IRRV held the proxy for the Russian Society of Appraisers (RSA) and hence we were sitting behind both the UK and Russian flags.  Fortunately there were no controversial votes!

Automated Valuation Methods (AVMs) remain very topical with the launch of TEGoVA’s publication, ”Assessing the Accuracy of Values of Individual Properties Estimated by Automated Valuation Models”, by Professor George Matysiak. The IRRV Council’s Roger Messenger gave a well-received presentation on “The Fallacy of the Tick-Box Bank Valuation Reports”.

David Magor, with our partner from Ireland, Patrick Davitt (IPAV), reported on the completion of the Erasmus plus project, “Resources for European Valuation Standards in Europe” (REVASE), providing training material to complement TEGoVA’s “blue book” on European Valuation Standards.

The IRRV will be paid for the work on REVASE from European Union funding under the Erasmus plus programme for education, training, youth and sport.  Erasmus is probably best known for enabling young people to study abroad. The IRRV is bidding for two more projects, but our access to EU funding after “Brexit” must be in doubt.  For the IRRV this will have budget implications.

Back in London, the next day I was pleased to have been invited by the Chartered Institute of Taxation to an address by the Rt. Hon. Nicky Morgan MP, Chair of the House of Commons Treasury Committee.  It was a fascinating account of the work and powers of the Select Committee and interesting to hear that it is more powerful when no party has an overall majority in the Commons.

Yours, 

Gordon

Gordon Heath BSc IRRV (Hons) is President of the Institute

June 2018 – Letter from the President

Dear reader,

Immediately after Easter, Carla-Maria and I were off to Prague for the International Association of Assessing Officers (IAAO) 2018 Research Symposium.  The IAAO is based in the USA and the focus of the 2018 event was “on the issues surrounding data in the development of valuation estimates and the challenges data brings to government officials across the world.”

I was able to minimise the cost to the IRRV by “volunteering” to present a paper.  My subject was “The Need for a Good Appeals Process”.  Unfortunately, the English experience of reducing business rate valuation appeals by making the process difficult through Check, Challenge and Appeal is an example of exactly what not to do!  It has completely missed the point that appeals are reduced by making the valuation process transparent.

Other papers presented illustrated how data and technology can be harnessed to present fair valuation assessments where the basis of the calculations are made readily accessible. I believe that we could use such techniques within council tax, to have regular, even annual revaluations to discrete capital values.  However, business rates would be more difficult to achieve but not impossible.  We just need some vision, leadership and a willingness to embrace the future.

Back home and the rest of April enabled me to visit the West Midlands, North and Mid Wales, Lancashire and Cheshire and the East Midlands IRRV Associations for their respective AGMs.  It was a pleasure to attend all of these events and my thanks go to the Presidents and Executive Committees for inviting me and making me so welcome. 

I am always pleased to have the opportunity to meet local members and the members of the Association Executive Committees who put in so much work, often over many years, to keep their respective Associations active. It was therefore a particular pleasure to present Alan Lemmon with his IRRV Long Service award, in recognition of his 35 years’ service to the East Midlands Association.

April also brought the IRRV Thames Valley dinner dance, in the delightful surroundings of Highfield Park. Sarah Kingston and the Executive Committee made Carla-Maria and I most welcome and a very jolly time was had by all that evening!

Finally, I must mention the IRRV National Council meeting on 23rd April.  We are making progress on our future strategy and setting out the policies of the Institute.  On a personal note, one small change that I have made is to no longer wear the full Chain of Office for national Council meetings.  This followed a short discussion at the January meeting where I came to the view that if a Council member does not know who the President is, then they probably should not be there!  The Chain of Office should be used on formal occasions when entertaining Institute guests or attending Association events and I am proud to wear it on such occasions.

Yours, 

Gordon

Gordon Heath BSc IRRV (Hons) is President of the Institute

May 2018 – Letter from the President

Friends old and new take precedence this month, as Gordon Heath’s tour of duty is well under way :

Dear reader,

It is an important part of the IRRV President’s duties to represent and promote a positive image of the Institute at every opportunity, both to our members and to other organisations.  I welcome this opportunity - even if March was rather full of events.

A brief visit to Scotland on 2nd March was cancelled because the snow brought all the transport to a halt.  Fortunately, my next event was the IRRV London and Home Counties Association Dinner, which is my home Association.  Once again the event was held in the splendid surroundings of the Innholders’ Livery Hall.  I congratulate the organiser, Chris Grose, for arranging such a splendid menu with matching wines. And once again the Chef, Herbert Berger, who has won Michelin stars three times, really excelled himself.  I recommend this event to all IRRV members and I am grateful to the Executive Committee for their invitation.

The following week, David Magor and I enjoyed the Association of Accounting Technicians annual lunch at the Clothworkers’ Hall. The following evening, I was at Lord’s Cricket Ground for the annual dinner of the Society of London Treasurers, where I was pleased to be seated with three people that I knew.

The next morning was the start of another late wintery weekend, as we drove to Haydock for the IRRV Lancashire and Cheshire Association dinner dance.  It was of course well worth the drive and I was pleased to see a large turnout for the event.  It is always a pleasure to visit the Lancashire and Cheshire Association, because they are a very lively and active Association.  My thanks go to their President, Julie Smethurst, and her Executive Committee, for inviting Carla-Maria and I to their event.  It was also a very nice touch to leave such a splendid bunch of flowers in our room.

The following week brought three more events, starting with the Association of Taxation Technicians President’s reception in the Churchill War Rooms.  It is a really interesting place to visit, although there is not much time after meeting friends both old and new and the brief speeches.

Next day was lunch at the Lansdowne Club for Past Presidents and Honorary Members of the Rating Surveyors’ Association, and I of course fall into the latter category. 

Finally, on Friday of that week I was hosting the IRRV Presidents’ Lunch at the Goring Hotel in London.  I am pleased that we had a good response, with Presidents from many professional bodies and other organisations attending.  I was pleased to receive a gift of a framed photograph of myself and my wife taken at a previous TEGoVA conference, from Brian Dempsey of the Institute of Professional Auctioneers and Valuers in Ireland. I now recognise and have started to get to know the Presidents of many of the related professional bodies!  I was also pleased to welcome Mr Justice Holgate, President of the Upper Tribunal (Lands Chamber), Gary Garland, President of the Valuation Tribunal for England and Councillor Sue Baxter, Chairman of the National Association of Local Councils, to name a few.

Yours, 

Gordon

Gordon Heath BSc IRRV (Hons) is President of the Institute

The President attends the IRRV Lancashire and Cheshire Association AGM

From left in picture :   IRRV President Gordon Heath congratulates IRRV Lancashire and Cheshire Association in-coming President Robin Gibbons, Senior Vice-President Catherine Nicholson and Junior Vice-President Richard Kerr, on their new positions of office. 

Sincere congratulations were extended at today's well-attended AGM (20th April) to out-going President Julie Smethurst for her very successful year in office.

April 2018 – Letter from the President

This month, our President highlights how the Institute is grasping the opportunity to influence government policy :

Dear reader,

On 7th February, I attended the joint MHCLG (formerly DCLG) and LGA System Design Working Group, which discusses the possible detailed working of business rates in the future with 100% (or 75%?!) local retention.  At present the group is looking at reform within existing legislation to be implemented in 2020/21. With Brexit taking up so much government time, there is little room for primary legislation until after 2020/21.  Meanwhile, our discussions will inform the consultation process, allowing a long term proposal for reform.

The System Design Working Group is planning to discuss seven core technical papers over the coming months, supplemented by other papers in response to our discussions.  We started with a paper on the Central and Local Rating Lists.  At this stage, these papers are largely concerned with the technical working of how the rate income is distributed to local authorities and will feed into future consultation papers.

Despite Brexit, it does seem that if the government really wants to do something, it will.  Hence the Telecommunications Infrastructure (Relief from Non-Domestic Rates) Act received Royal Assent on 8th February and will give 100% relief to new full fibre infrastructure.

Meanwhile, the IRRV is making progress on the plans for this year’s Performance Awards and I am pleased that Paul Sinha has agreed to host the Awards Dinner in Telford.  Paul was born in Britain of Bengali parents and qualified as a doctor while also taking his initial venture into the world of stand-up comedy. He is now a full-time comedian, radio presenter and TV personality. If you ever have time to watch tea-time TV, you will recognise him from the ITV quiz show “The Chase”.

On the technical side, in February the Institute responded to the consultations on “Business Rates in Multi-occupied Properties (re. Woolway v Mazars) [England]” and “Default County Court Judgements [England and Wales]”.

March began with a cold snap, bringing snow all over Britain. Fortunately, the Institute’s Policy Committee had planned a teleconference on our budget and the direction of the Institute.  We made good progress and I am optimistic that changes to make us fit for the future will be in place sooner rather than later.

Yours, 

Gordon

Gordon Heath BSc IRRV (Hons) is President of the Institute

March 2018 – Letter from the President

Dear reader,

Business Rates are dominating my Presidential year, with continued calls for reform from ratepayers. This is likely to be fuelled by the bills for 2018/19, with some facing large increases and others not receiving their gains following last year’s revaluation. The renamed Department of Housing, Communities and Local Government (DHCLG) is still working on rating reform and I have recently attended a meeting of the System Design Working Group at the Department.  The main topic this time was the contents of the Central Rating List.

My first official event of 2018 was the Chartered Institution of Taxation President’s Luncheon held in the Drapers’ Hall, in the heart of the City of London. This provided an interesting networking opportunity with related organisations in very historic surroundings.

Unfortunately, having agreed to do a joint presentation with my wife at the London and Home Counties Association later that week, Carla-Maria and I had to cancel as a result of family illness which took us away from London. 

Next up was a meeting at IRRV HQ to discuss the arrangements for the 2018 Performance Awards. The scheme continues to attract high quality entries and I look forward to presenting this year’s awards in October.

I was pleased to support my home Association at the London and Home Counties Annual Quiz.  This has the format of a pub quiz, not least because it is held in a pub! My thanks go to the organisers of this fun event and congratulations to the team from Tower Hamlets, who won …. yet again!  As for the President’s team, well, we didn’t come last.

The following Monday, I chaired the January meeting of the IRRV Council.  The main issues included agreeing the draft budget for 2018, following a good outturn for 2017, and moving our strategy review forward.

February began with the IRRV West Midlands Association’s Annual Dinner at the Bromsgrove Hotel and Spa. The venue was excellent and my thanks go to their President Neil Jinks for inviting Carla-Maria and myself.  The organising committee of Jan Evans, Andrew Ludwig and Barry Powell did a great job. 

I now look forward to a busy few months visiting IRRV Associations, as well as representing the Institute at various meetings and conferences.

Yours, 

Gordon

Gordon Heath BSc IRRV (Hons) is President of the Institute

Letter from the President - February 2018

Gordon Heath’s New Year Message 

Dear reader,

Since my last letter, I have chaired the November meeting of the IRRV Council, then over to Roscommon in Ireland to promote the REVASE learning material to Institute of Professional Auctioneers and Valuers members and back home to attend the Association of Chief Estate Surveyors lunch in the splendid surroundings of the Marble Hall, City Hall, Cardiff.  Next in the diary was the RICS Rating Diploma Holders’ lunch at the RAF Club in Piccadilly, London, followed rapidly by the IRRV East Midlands dinner in Chesterfield at the excellent Casa Hotel.  

In early December, I was delighted to spend a few days in Edinburgh, where I attended a lively meeting of the Scottish Association Forum, followed by their Annual Reception.  It gave me a great opportunity to talk to at least some of our Scottish members and understand more about their perspective on benefits, revenues and valuation.  Also, Edinburgh was at its best, with the Christmas market in full swing.

Turning to the serious matter of the future of rating throughout the UK, the Barclay Review has been a great start in Scotland and recent developments in Northern Ireland are very interesting too. In addition to these, I am aware of various suggestions to improve the rating system, and the list below is reproduced from my “Rating matters” feature published in the December edition of the Institute‘s Valuer magazine.  I stress that none of these are yet IRRV policy and I do not even agree with all of them.  What are your views on the following ideas and do you have any other suggestions?  Here goes:

1. Restore the rights of the Billing Authority to make proposals to enter new properties and to make alterations following a relevant Valuation Tribunal decision.

2. Restore the rights of the Billing Authority to be party to agreements and to appear in Valuation Tribiunals.

3. Create the right for ratepayers to appeal to the Valuation Tribunal in respect of disputes, reliefs and exemptions.

4. Enhance the powers of the Billing Authority to inspect property to be consistent with the requirements of Billing Authority Reports to the Valuation Office Agency.

5. Remove the fees from the Valuation Tribunal.

6. Enable Billing Authorities to agree equated dates.

7. Transfer the requirement to serve completion notices to the Valuation Office Agency and allow subsequent corrections.

8. Make all mandatory reliefs discretionary.

9. Merge small business and rural relief.

10. Limit small business and rural relief to 50%.

11. Merge business centres into single assessments with a percentage discount to reflect vacancy rates.

12. Stop demerging offices/shops and associated car spaces.

13. Merge all parts of a property that are occupied by one ratepayer within the curtilage of the building.

14. Review all reliefs and exemptions.

15. Extend empty relief to 12 months, with no further relief unless the property has been occupied for at least 12 months.

16. Move to three yearly revaluations.

17. Limit the increase in the multiplier to CPI, not RPI.

18. Localise the setting of the multiplier.

19. Abolish committal to prison for non-payment.

20. Introduce an internet transaction tax, collected nationally but distributed locally in the same way as the central list.

21. Transfer all MoD property into the central list, because the billing authority has no power to inspect and no planning rights.

22. Take the Valuation Office Agency out of Her Majesty’s Revenue and Customs.

23. Stop using the Government Gateway in relation to Check, Challenge, Appeal.

24. Allow rating agents to access the appeal process on behalf of their clients in the same way that accountants act on behalf of their clients.

That should give you something to think about, and of course some of the above ideas are contradictory - but please make your views known to the IRRV by emailing me on gordon.heath@talk21.com or the Chief Executive, David Magor, on david.magor@irrv.org.uk 

Yours, 

Gordon

Gordon Heath BSc IRRV (Hons) is President of the Institute