Business Rates 2026: Important Update

Revaluation 2026: Expect a shift in liability

The 2026 revaluation reflects changes in rental values since the last list.

• Industrial and logistics assets are expected to see notable increases in rateable values, following sustained rental growth.
• Retail, hospitality and leisure sectors were anticipated to experience modest changes but significant uplifts in some locations have surprised us.

While the system is designed to be neutral overall, in practice it redistributes costs between sectors.  Strong-performing sectors, particularly industrial and logistics are likely to take on a greater share of the total rates burden.

What this means for you or your tenants:

If you occupy or invest in industrial or logistics property, there is a higher likelihood of increased liabilities from April 2026.

Multipliers Reset for 2026/27

New multipliers have been confirmed for the 2026/27 billing year:

• Small RHL (<£51,000 RV): 38.2p
• Small non-RHL (<£51,000 RV): 43.2p
• Standard RHL (£51,000–£499,999): 43.0p
• Standard non-RHL (£51,000–£499,999): 48.0p
• High value (£500,000+): 50.8p

Rates payable = Rateable Value × Multiplier (less reliefs)

Importantly, these multipliers apply for one year only.  Future rates will depend on government decisions, meaning longer-term cost certainty remains limited.

What this means for you:

Budgeting beyond 2026/27 should allow for potential changes in multipliers, particularly for larger portfolios.

What Could Your Rates Bill Look Like?

By way of illustration:

• Small retail unit (£22,000 RV): £8,400 per year
• Small industrial/office (£25,000 RV): £10,800
• Standard retail (£75,000 RV): £32,250
• Standard industrial/office (£80,000 RV): £38,400
• Large property (£550,000 RV): £279,400

(Figures shown before reliefs or transitional adjustments.)

What this means:

Even relatively modest changes in rateable value, combined with different multiplier bands, can materially affect annual costs.

Transitional Relief: Limiting Increases

To reduce the immediate impact of revaluation, Transitional Relief will cap how much your bill can increase each year (applied automatically where eligible).

Increase caps:

Up to £20,000 RV (£28,000 in London)
o 5% → 10% + inflation → 25% + inflation

£20,001–£100,000 RV
o 15% → 25% + inflation → 40% + inflation

Over £100,000 RV
o 30% → 25% + inflation → 25% + inflation

Important:

• These caps apply only to increases
• Any reductions in liability are applied immediately

What this means:

If your rates are increasing, the impact may be phased, but it will still build over time. Early visibility of future liabilities is key.

Key Actions to Consider

• Review your new rateable values as soon as you can
• Model your expected liabilities for 2026/27 and beyond
• Assess eligibility for reliefs and mitigation strategies
• Plan for phased increases, particularly on higher-value assets

Lewis Chambers FRICS, Senior Surveyor at Fenn Wright said “With multipliers set annually and transitional relief phasing in increases, forward planning is essential. Understanding how these elements interact will be key to managing future liabilities.”