Articles and Speeches

Inspectors to Invade Bedrooms
18-Nov-05, Press Release.

"Following the revelation that John Prescott is planning to charge higher council taxes on homes with patios, multiple bedrooms, conservatories and scenic views, Adam Afriyie, MP for Windsor today expressed alarm at reports that Government inspectors may be entering people’s homes to collate this information.

The inspectors, from the Valuation Office Agency – an arm of the Inland Revenue – will have the right to enter properties and gardens, and, in many cases, take photographs of each home, including bedrooms.

Mr Afriyie said, “Labour’s forthcoming council tax revaluation and rebanding will mean an army of nosy clipboard inspectors invading people’s homes - including their bedrooms.

“I am concerned that the privacy of law-abiding citizens will be ignored due to Labour’s desire to levy new stealth taxes on hard-working families and pensioners.”

The internal Valuation Office Agency documents, obtained via Parliamentary Questions, reveal:

• Because the Government has yet to make the politically explosive decision on the number and structure of the new council tax bands, every home in England will have to have an exact numerical valuation, rather than just being placed in a wide valuation band. This will send the cost of the council tax revaluation through the roof, and require invasive inspections of people’s homes.

• The ‘Big Brother’ computer database will include new ‘inspection codes’ for each property that will allow the Valuation Office Agency to check which properties have been inspected, and the degree to which an internal or external inspection has been recorded.

• Advice from the Office of the Surveillance Commissioner argues that entering people’s homes to take details of the property does not breach the Regulation of Investigatory Powers Act or the Human Rights Act, even though these laws were supposed to protect citizens’ privacy. Inspectors taking photographs of property is not apparently in contravention of these laws."

Notes to Editors

LABOUR’S INVASIVE COUNCIL TAX REVALUATION
Original council tax system
When council tax was set up, it was intended that properties should be placed in a wide council tax band (between A to H), requiring only a simple assessment of the value of the property. When the valuations took place in 1992, valuers knew the banding structure when conducting out their assessments.

The valuation bands were determined by primary legislation, the Local Government Finance Act 1992. It received Royal Assent on 6 March 1992. The banding of individual properties commenced in January 1992 and draft valuation lists were published in December 1992 (National Audit Office, Council tax valuation in England & Wales, March 1994, p.28). In other words, they did not need to calculate the numerical valuations of each property – they merely had to place them into a band.

As the Valuation Tribunal Services notes on this 1992 legislation, ‘it is important to remember that the legislation requires Listing Officers to place each dwelling within a Council Tax band and not place a precise value upon each dwelling’ (VTS, Council tax guidance manual, November 2004, para 2.4.18). http://www.valuation-tribunals.gov.uk/council_tax_manual_index.htm

Labour’s new revaluation
This process will not be followed for the Labour’s council tax revaluation, since although the Valuation Office Agency commenced work in April 2005, with a view to publishing draft valuation lists by October 2006, the valuations are to take place without clear knowledge of what the banding structure will be. As a result, the Agency has decided it will need to calculate a numerical property value for every home, so it could be placed in the appropriate band later. Their documents admit:

‘Given the degree of uncertainty around the council tax bands in 2007, EVERY property will probably need a specific numeric valuation so, when the bandings are finally agreed, properties can be allocated their banding quickly’ (VOA, Council tax news – Council tax reval 2007, undated internal note, obtained via Hansard, 26 October 2005, col. 447W). Documents available at: http://www.conservatives.com/pdf/revaluation-nov05.pdf

‘No decisions have yet been reached by the Government on whether, and if so what, revisions should be made to the level and number of council tax bands. Those decisions will be informed by the outcome of the review currently being undertaken by Sir Michael Lyons due to report by end of 2005’ (VOA Press Release, 10 September 2004). http://www.voa.gov.uk/news/press04/ct-england-modelling-tech.htm

As a result, the revaluation process will be more expensive, and far more individual pieces of information needed to be gathered to produce a precise numerical valuation rather than the easier band placement.

INSPECTORS IN YOUR HOME
When council tax set up, detailed inspections of people’s homes did not take place. The National Audit Office’s assessment of the original valuation exercise notes,

‘Private sector valuers had no right of access to property. The Valuation Office were given statutory rights of access, where necessary, with effect from March 1992. But in practice, because of the short timescale, inspections had to be external… the Valuation Office had to place a large reliance on such bandings “at the desk”. In their staff planning they estimated that over 90 per cent of bandings would be made this way. Private sector valuers carried out bandings on essentially the same basis as the Valuation Office’ (National Audit Office, Council tax valuation in England & Wales, March 1994, pp.6, 12)

By contrast, Labour’s forthcoming council tax revaluation foresees a far wider information gathering exercise. Valuation Office documents explain,

‘In readiness for the forthcoming council tax revaluation (England), the dwelling house codes that can be attached to a domestic property will be expanded from ten items to seventeen… The codes of Group and Type will have new entries added and existing entries amended’ (VOA, IT IA 180303 – Further Expansion of Dwelling House Codes, para 1.1 – 1.2, obtained via Hansard, 26 October 2005, col. 447W). http://www.conservatives.com/pdf/revaluation-nov05.pdf

The new ‘dwelling house codes’ include number of bedrooms, number of floors, lowest floor level, conservatory type and area, outbuildings, and a new coding system to count the number of garage spaces and parking spaces. This includes the introduction of new ‘value significance codes’, which in January 2005, were expanded to cover 66 different property features, including balconies, near a golf course, in Conservation Area, large garden; large patio; roof terrace; sea views and views of hills or lakes; gated estate (VOA, IT IA 190105 – Changes to the Property Details Application).

These codes will allow properties with these indicators being placed to have a larger numerical valuation, thereby pushing many homes into a higher council tax band, and thereby being charged higher council tax bills than at present and than under the old valuation system.

More inspections – and inspectors taking photographs of your home

Internal Valuation Office Agency documents also reveal the scope of the inspections planned, and the different types of inspection to obtain the information, including external and internal inspections.

‘The processes involved are detailed below:

‘External inspection: Obtain factual information that can be seen from external inspection such as the Group, Type, Age and Parking. Make judgments about the property, (extrapolation), where possible based on factual information gathered from similar properties in the locality. Check the vicinity for any factual information about the neighbourhood that could have an effect on value, e.g. sewage works, sea view… Knowledge can be applied to validate details such as number of rooms, bedrooms, area, etc…

‘Physical inspection: Obtain factual inspection either from internal inspection or inspection from within the cartilage of the property, and always with the knowledge/consent of the occupier. A physical inspection should result in all property details being obtained. Information regarding changes made to the property since the date of the sale should also be obtained.

‘Questionnaire: Issue where the property cannot be seen from the road or where missing data can be best gathered using this method, and a physical inspection is not justified, such as information regarding number of rooms, bedrooms, bathrooms, floor level, parking, etc. Information regarding changes made to the property since the date of the sale should be obtained’ (VOA, CTRE IA 140305, Sales Verification and Validation, March 2005, obtained via Hansard, 26 October 2005, col. 447W). http://www.conservatives.com/pdf/revaluation-inspectors.pdf

The Agency has created new codes for its computer systems to reflect the increase in the number of inspections.

‘This release introduces a range of inspection activity that will replace the existing code “90 – inspected”. These new codes have been added to enable more accurate recording of the level of inspection undertaken for a CT [council tax] report or appeal case and also allow for the recording of a specific CT Reval (England) activity’ (VOA, IT IA 211004 ITSD Central Database – Changes to the Council Tax Application – CT Reval (England), October 2004, obtained via Hansard, 26 October 2005, col. 447W Documents available at: http://www.conservatives.com/pdf/revaluation-inspectors.pdf

The Agency has also produced a note to its inspectors on how conduct themselves when engaging in investigation activities and inspections, highlighting how inspectors will be in people’s homes and taking photographs of those homes.

‘The Regulation of Investigatory Powers Act (RIPA) 2000 gives certain public authorities, including the Inland Revenue, the legal authority to carry out covert investigation activities. It also regulates the way in which those activities are carried out to ensure that person’s rights of privacy under Article 8 of the Human Rights Act 200 are only interfered with when necessary’ (para 1.1).

‘Surveillance activities are those that involve monitoring, observing or listening to persons. Looking at property is not surveillance but there is a risk that when inspecting property staff may see and record other information about persons. For example, when taking photographs of a property that is a risk that one may unwittingly record other personal information’ (para 2.1, original emphasis).

‘It is unlikely that staff carrying out inspection for local taxation purposes will contravene the requirements of this Act. However, it is good practice to seek the agreement of the occupier of premises before taking photographs either internally or externally’ (para. 2.8).

(VOA, CS IA 231203 – The Regulation of Investigatory Powers Act 2000, December 2003, obtained via Hansard, 26 October 2005, col. 447W).
http://www.conservatives.com/pdf/revaluation-inspectors.pdf