Business Rates Revaluation: 2026 Handbook
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DOWNLOAD THE 2026 HANDBOOK
As always, liabilities may change as a consequence of the Revaluation and wider Government initiatives. While this is a perennial challenge, volatile changes in property values between valuation dates and the introduction of differential multipliers make this a far more difficult exercise when it comes to the 2026 Revaluation. A number of factors beyond ‘normal’ inflationary movements will impact value and liability from April 2026, including:
Post-Covid bounce-back
- Return to the office amid ongoing structural shifts, higher environmental standards and accelerated obsolescence in the wider market.
- Improved trading compared to April 2021, particularly relevant for properties valued with reference to their turnover/profit
- Changing consumer behaviours and an ongoing move away from the high street
- The continued strength of the industrial and logistics market, albeit slowing somewhat more recently
Government Initiatives
Throughout successive Revaluations, many ratepayers have been calling for reform. The retail community has been at the forefront of this, primarily through the British Retail Consortium which has lobbied for reduced liabilities and a rebalancing across different property sectors (away from retail).
Responding to this pressure, while seeking to maintain the value of the overall revenue stream in inflation-adjusted terms, the 2024 Autumn Budget saw the Chancellor announce differential rate multipliers linked to both property value and sector.
The Government has now legislated for this and its Bill provides for:
- Differential rate multipliers
- Reduced rates for retail, hospitality and leisure properties of up to 20p/£ (approx. 40%) where RV is below £500,000
- Reduced retail rates funded by increased multipliers for all properties where RV is equal or greater than £500,000, up to maximum of 10p (approx. 20%)
Treasury is now grappling with whether to implement a hard cut off at £500,000, whether to exclude certain properties (for example schools and hospitals), and where to set the discounts and supplements while achieving revenue neutrality.
The fine details of the new approach are anticipated in the Autumn 2025 Budget, less than six months from new liabilities going live.
- What’s New in 2026