A coalition of leading small business and enterprise organisations including National Enterprise Network (NEN) has written to the Chancellor, Rachel Reeves, urging immediate intervention over a sudden change in how the Valuation Office Agency (VOA) is assessing flexible and managed workspaces. The joint letter warns that the shift to merging sites into single hereditaments is creating an unlegislated and retrospective tax rise for thousands of small firms, despite no wrongdoing by operators or tenants.
The signatories highlight that flexible workspaces are “essential growth infrastructure for the British economy” and a critical part of the SME ecosystem, supporting founders, freelancers, makers, and early‑stage businesses across the UK.
The new approach removes access to Small Business Rates Relief and other vital reliefs, imposing unexpected liabilities that many small firms cannot absorb.
The letter calls on HM Treasury to restore the previous multiple‑assessment approach, cancel retrospective liabilities, ensure any future changes apply prospectively with adequate notice, and publish an economic impact assessment before implementing sector‑wide rating changes.
The organisations warn that without urgent action, the policy risks widespread workspace closures, job losses, and long‑term damage to local economies and high streets.