HC Deb 23 June 1998 vol 314 cc455-6W
Mr. Caplin

To ask the Chancellor of the Exchequer if he will make a statement on the outcome of the experiment involving the private sector undertaking work in the rating and council tax fields. [47413]

Dawn Primarolo

The 1995 Next Steps Review of the Valuation Office Agency recommended that experiments be held to establish the feasibility and capability of the private sector to undertake work in the rating and council tax fields. Experiments were held during a 12 month period beginning 1 July 1996 involving contractors in four locations (two performing functions related to council tax and two to non-domestic rating). The results were compared with control offices in the Valuation Office Agency. The experiments have now been evaluated and the conclusions arethat it is feasible for private firms to meet particular operational requirements of valuation for rating and council tax; but that there is no clear financial or operational advantage in the permanent use of the private sector in the work concerned.

The Government have therefore decided not to take any steps at this stage to contract out rating and council tax valuation work. But if at any time they require valuation work which cannot easily or quickly be delivered within the capacity of the Valuation Office Agency they will look positively at involving the private sector.

I am very grateful to the private sector firms involved in the experiments for an effective example of public sector/private sector partnership.