2026 Business Rates Changes
2026 Business Rates Changes
1.
What are the Government's aims?
1. Protecting the high street Targeted support for Retail, Hospitality, and Leisure (RHL) sectors to help town centres stay vibrant and competitive.
2. Encouraging investment A fairer, more modern system gives businesses the confidence to invest and grow.
3. Building a system fit for the 21st century Transparent rules, accurate valuations, and sector-specific rates bring business rates into the modern era.
2.
New business rates multiplier structure (from April 2026)
Sector-specific multipliers introduced
Properties in the Retail, Hospitality and Leisure sectors will benefit from lower business rates multipliers, helping ease the burden on high street businesses.
Large properties (with a rateable value over £500,000) will be subject to higher multipliers to help fund the support for RHL sectors.
Cap on high multipliers
The multiplier for large properties will be capped at 10p above the standard rate, ensuring rate increases remain manageable.
3.
Comparing the system: 2025–26 vs 2026–27
Category
25 – 26
26 – 27
Small properties
(RV < £51,000)
One small business multiplier for all sectors
RHL small business multiplier for RHL properties Non-RHL small business multiplier for others
Standard properties
(RV £51,000–£499,999)
One standard multiplier for all properties
RHL standard multiplier for RHL properties Non-RHL standard multiplier for others
Large properties
(RV ≥ £500,000)
No specific multiplier
New large property multiplier applies
Exact rates will be confirmed in the Autumn Budget 2025, aligned with the 2026 revaluation and economic conditions.
4.
Valuation transparency and compliance
New information duty (starting April 2026)
- From April 2026, businesses will be required to keep the Valuation Office Agency (VOA) updated on changes to their property and how it’s used.
- The rollout will be gradual, with full compliance required by April 2029.
Simplified appeals process by 2029
- The current Check, Challenge, Appeal system will be replaced with a streamlined Challenge process, aimed at resolving valuation issues more efficiently.
5.
What the information duty means for you
From 2026, ratepayers will have a legal obligation to submit up-to-date information to the VOA. This ensures more accurate, fair, and timely business rates assessments.
- You’ll need to report changes such as:
- Alterations to floor area (e.g. expansions or reductions)
- Changes in property use (e.g. office to café)
- Structural modifications
- Updates to lease terms or rent
Why this matters:
Accurate information leads to fairer valuations—and fewer surprises. This change is about making the system work better for everyone, from single-site traders to large occupiers.
6.
Key Dates
April 2026
Phased rollout of the information duty begins
By April 2029
Information duty becomes mandatory for all ratepayers
2029 rating list
New challenge-only process replaces the current appeals system
How rerate can support you
These reforms are wide-ranging, and every business will feel the impact differently. At Rerate, we specialise in helping occupiers, landlords, and advisors understand what’s changing—and what actions to take.
Whether it’s forecasting your future liability, reviewing your valuation, or supporting your compliance with the new information duty, Andrea Barnes and the team are ready to support you with practical, jargon-free advice
Need help planning ahead?
