Ms Lorraine O'Donoghue:

It can take a long time for appeals to work their way through the Valuation Tribunal. Sometimes the tribunal might make a ruling on the valuation of a business which might have retrospective effect. Some local authorities might find themselves having to provide refunds, assuming rates have been collected if there is an appeal. The leakage on appeal provision proposed for insertion into the formula is simply to ensure the revaluation will remains revenue neutral. The evidence suggests that when an appeal works it way through the system and the impact is fully known - this can take a number of years because of the volume of appeals - a revaluation is not revenue-neutral and that in some instances it is a considerable cost to individual local authorities. This will allow the formula to be adjusted on the basis of the expertise of the commissioner and their advice and to be factored in immediately, rather than having to deal with the consequences a couple of years later.