2026 Business Rates Revaluation – What Businesses Need to Know

What Is the 2026 Business Rates Revaluation?

The 2026 Business Rates Revaluation is a nationwide reassessment of all non-domestic properties in England and Wales. Carried out by the Valuation Office Agency, the revaluation comes into effect on 1 April 2026 and will determine business rates liabilities for the 2026–2029 rating period.

Rateable values will be updated to reflect rental values as at 1 April 2024, replacing those currently based on 2015 market evidence. While the revaluation does not increase the total amount of business rates collected overall, it redistributes the tax burden, meaning some businesses will pay more and others less depending on sector, size and location.

Key Facts and Headline Figures

• The total rateable value across England is expected to rise by around 19% overall, with significant regional variation.

• London is forecast to see some of the largest increases, with average rateable values rising by over 20%.

• Industrial and logistics properties are expected to experience some of the strongest growth, with average increases of around 20–25%.

• Retail properties have seen much slower rental growth, with average increases closer to 10%, and in some locations minimal change.

• Certain specialist property types, including large hotels, airports and leisure venues, show particularly sharp uplifts, while some niche sectors may see reductions.

  
  

These are averages only. Individual properties may experience changes that differ significantly from their sector norm.

How Business Rates Will Be Calculated From April 2026

From April 2026, business rates bills will be calculated using:

• A new rateable value based on April 2024 rental evidence

• A revised system of multiple multipliers, replacing the current standard and small business multipliers

• Transitional relief schemes to phase in significant increases

The government has confirmed that five separate multipliers will apply, with lower multipliers targeted at smaller retail, hospitality and leisure properties, and higher multipliers applied to larger, high-value properties. This represents a fundamental shift in how business rates are distributed and makes accurate valuation more important than ever.

How Different Industries Are Affected

Retail

High street retailers in secondary and tertiary locations may see relatively modest increases, while prime retail units and large supermarkets are more exposed to higher bills due to rising values and higher multipliers for large properties.

Hospitality and Leisure

Pubs, restaurants, hotels and leisure venues face a mixed outlook. Smaller venues may benefit from lower multipliers, but larger premises and destination venues are likely to see substantial increases, particularly where rental values have rebounded strongly.

Industrial and Logistics

Warehouses, factories and distribution centres are among the most affected sectors. Strong demand and rental growth since the last revaluation mean many occupiers are facing significant increases in rateable value and future liabilities.

Offices

Office properties show varied outcomes. Prime city-centre offices may see notable increases, while regional and secondary offices may experience more moderate changes depending on local market conditions and vacancy levels.

Why the 2026 Revaluation Matters to Your Business

A higher rateable value does not automatically mean a proportionate increase in your rates bill, but many businesses will still face higher costs unless action is taken. Your final liability will depend on:

• The accuracy of your property’s valuation

• The multiplier applied to your rateable value

• Transitional relief and any sector-specific reliefs available

Errors in floor area, use, layout or valuation assumptions are common and can materially affect the amount you pay.

How Waverly & Knight Can Help

We help businesses across all sectors prepare for and respond to the 2026 revaluation by:

• Reviewing and forecasting future business rates liabilities

• Checking valuation accuracy and identifying errors

• Submitting challenges and appeals

• Advising on reliefs, transitional arrangements and mitigation strategies

  
  

Early preparation is critical. Reviewing your position before the 2026 rating list comes into force puts you in the strongest position to manage costs and avoid overpaying.

Contact us today to arrange a professional review of your business rates position ahead of the 2026 revaluation.