From 1st April 2026, the following Business Rates Revaluation will come into effect — and it’s set to be one of the most significant shifts in recent years. Alongside the revaluation, the government is introducing a new multiplier structure designed to provide permanent support to the high street while redistributing liabilities across larger properties.

For businesses of all sizes, understanding these changes — and preparing early — will be essential.

What’s Changing from 2026?

The government has committed to modernising the business rates system, aiming to create a fairer and more sustainable framework. Key changes include:

1. New Multiplier Structure

From April 2026, multipliers will no longer be “one size fits all.” Instead, there will be:

• A new high-value multiplier for all properties with RVs of £500,000 and above – targeting less than 1% of properties, but including many large industrial and distribution warehouses.
• Lower multipliers for Retail, Hospitality, and Leisure (RHL) properties with rateable values (RVs) under £500,000 – giving long-term certainty to the high street.
• Standard multipliers for non-RHL properties between £51,000 and £499,999.

Exact rates will be confirmed at the 26th November 2025 Autumn Budget, but legislation already caps how far the high-value multiplier can rise and how low the RHL multipliers can go.

2. 2026 Revaluation

As part of the routine revaluation cycle, the Valuation Office Agency (VOA) will update rateable values to reflect rental market conditions as of April 2024. This process redistributes liabilities across businesses but is not intended to raise additional revenue overall.

Some sectors — particularly those occupying large industrial or office properties — could face significant increases, while others may benefit from reductions.

3. Transitional Relief

The government has confirmed that support will be available for businesses seeing sharp increases in bills. Details of Transitional Relief will be announced at the Autumn Budget 2025.

Key Dates to Watch

26th November 2025 – Autumn Budget: The new multiplier rates and details of Transitional Relief will be confirmed.

October–December 2025: Draft 2026 rating list published (latest by 31st Dec): Check your updated rateable value and prepare to appeal/challenge if needed.

31st March 2026: Deadline to review existing liabilities. – Potential cut-off date for the 2023 Rating List Appeals.

1st April 2026: Revaluation takes effect.

What Should Businesses Do to Prepare?

Preparation now can help minimise the risk of higher liabilities later. Here’s what we recommend:

• Check your current rateable value (RV). If you believe your RV is inaccurate, consider challenging it before 31th March 2026. Any reduction could influence your future liabilities.
• Understand the market. The 2026 revaluation is based on rental values in April 2024. Compare changes in your sector between 2021 and 2024 to gauge potential impacts.
• Confirm RHL eligibility. If you operate in retail, hospitality, or leisure with an RV under £500,000, new lower multipliers may apply — but eligibility rules will be confirmed through secondary legislation.
• Scenario planning. Use the draft list (late 2025) to model potential 2026 liabilities and forecast cashflow impacts.
• Plan for Transitional Relief. Relief may cushion short-term increases, but it is temporary. Businesses should budget for their full liability beyond the relief period.
• Be ready to act. If your draft RV appears inaccurate, engage early to review and challenge.

 

The 2026 Business Rates Revaluation represents more than just a routine update — it’s a significant restructuring of the system that will reshape liabilities across every sector.

Businesses that prepare early will be best placed to manage risk, take advantage of reliefs, and protect their bottom line.

At Hanway Commercial, we help businesses navigate revaluations, challenge inaccurate valuations, and manage liabilities effectively.

Want to know what the 2026 revaluation could mean for your business?

Contact our team today at info@hanwaycommercial.com