Business Rates Revaluation: 2026 Handbook
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DOWNLOAD THE 2026 HANDBOOK
Government currently collects approximately £30 billion per year in business rates. This is predicted to rise to almost £40 billion by 2029, driven by a mix of inflationary growth, new properties entering the rating list and, importantly, a reduction in reliefs – particularly in the retail, hospitality and leisure sectors. It is and will continue to be an important revenue stream for Government and therefore a key cost line for ratepayers.
Current business rates liabilities are based on the VOA’s opinion of rental values on 1 April 2021 (expressed as a Rateable Value – RV); these came into force two years later in April 2023 (the 2023 Revaluation). The 2026 Revaluation will rebase all Rating assessments, reflecting April 2024 market values; a process designed to ensure that rate liabilities are closely aligned to economic and occupational market conditions.
Next year’s Revaluation, which is expected to maintain similar revenue levels for Government rebased for inflation, has the potential to materially change ratepayer’s liabilities given the redistribution of burden across sectors and geographies.
Notwithstanding the above, we anticipate that the overall % growth in the aggregate rateable value included in the Rating List to be greater than this, reflecting additional sectors not listed above and specifically those valued with reference to their build cost or profitability. As a result, we estimate that the overall increase will be in the range of 12.5%-15%.
The conclusions of our research are explored in more detail on the following pages.
- Overview