To ask the Secretary of State for Communities and Local Government pursuant to the answer to the hon. Member for Meriden (Mrs. Spelman) of 27 March 2007, Official Report, column 1419W, and 15 January 2007, Official Report, column 848W, on business rate valuations, whether the explanatory work has been completed; and what conclusions have been reached on the feasibility of using automated valuation modelling for business rate valuations. (145484)

The first phase in a two-phase feasibility study on the potential contribution of automated valuation modelling (AVM) in support of the forthcoming 2010 non-domestic revaluation concludes that an AVM is capable of supporting the revaluation of certain classes of property by providing:

1. Provisional valuation matrices.

2. Exception reports to assist in the review and validation of rental information.

3. Market analysis, including the development of market derived trending indices.

4. Revaluation ‘impact’ analysis reports that make available at an early stage information about the likely effect of the revaluation on the aggregate tax base.

The study has also shown that the AVM can be used to develop local or regional valuation time trend indices as well as providing detailed analysis to inform stakeholders of the impact of the revaluation much earlier in the process than would traditionally be the case.