Why 2026 Business Rates Revaluation Preparation Should Start Now

1 April 2025 marked one year until the next general business rates revaluation, the point at which the rateable values of commercial property are updated to reflect changing market conditions, with impacts on tax bills across England & Wales.

The potential impact on businesses of all types is substantial. According to the CBI and British Chambers of Commerce, business rates typically account for 15-25% of the total tax bill for the average UK business – more for property-heavy businesses such as retail, hospitality, manufacturing and logistics.

And while revaluations, by their nature, bring with them change and, often, pockets of unavoidable market disruption, Reval 2026 is set to be particularly destabilising for businesses of all sizes and across all sectors at a time when wider economic concerns remain in sharp focus.

With less time between valuation dates, proponents of more frequent revaluations suggest that they limit large swings in value from one to the next. That may, in normal circumstances, be true, but these are not normal circumstances.

A current revaluation formed in the crucible of Covid, from which we have largely recovered, will see leisure assessments lose their “Covid discount”; a buoyant industrial and logistics market will see their values increase, compounding increases already seen in Reval 2023; and build cost inflation will likely see assessments valued by reference to those costs increase as a result. With the exception of some office and retail values, it’s difficult to point to much in the way of downward drag on UK PLC’s total rateable value.

Of course, with a larger pot of RV, the multiplier should reduce to balance out the total tax take from one revaluation to the next (save for inflationary increases). Not so this time. Recently announced reforms will see the introduction of a “super multiplier” – a supplement to be added to all RVs over £500,000 to fund a discount on small retail, leisure and hospitality assessments. Whilst there’s no clarity on just how large that supplement will be, regulations soon to be enacted will give the government the scope to add up to 20% on liabilities, wiping out some if not all of the respite that might be offered by a falling underlying multiplier. And the discount it’s intended to replace may be less than those qualifying properties already enjoy via the current relief landscape.

So what should an astute business do?

First, understand where your assessment might move to. Although draft values won’t be made public until autumn, a preliminary review before then can highlight areas of likely concern.

Second, explore early opportunities to mitigate. Ideally, the system should not be complicated by reliefs and differential multipliers, but in reality, ratepayers should make sure they make the best use of them to their own advantage.

Finally, it’s more important than ever to ensure the facts upon which the Valuation Officer has based their assessment remain correct. Until such time as the planned “Duty to Notify” of physical changes to the property or its tenure are widely introduced from April 2029, the potential remains for Rateable Value to be based on historic, incorrect data. Ratepayers would be well placed to review their current valuations and ensure the best starting point for future review.s

The system will continue to change. With further statutory reforms and duties planned, this pace is only set to increase. Challenging as it is, the more that businesses do now to get ahead, the more manageable the impact of these 2026 changes will be – both in terms of the accuracy of bills and the time to forecast, prepare and mitigate for their impact.

For more information, view our dedicated Business Rates webpage HERE.

Josh Myerson FRICS Dip Rat IRRV (Hons) is head of Montagu Evans’ 50-strong Rating Advisory team and, since 1 April 2025, also leads the partnership’s entire Advisory department, encompassing its Strategic, Development, Asset and Investment, Valuation, Residential Valuation and Rating advisory services. 

He is Chair of the RICS Rating Diploma Holders’ Section, a Past President of the Rating Surveyors’ Association (RSA) and an honours member of the Institute of Revenues Rating & Valuation (IRRV).