Business Rates
2026 Rating Revaluation
The Government’s Valuation Office Agency (VOA) is understood to have completed its work on the upcoming 2026 Rating Revaluation, which will take effect from 1 April 2026. This revaluation will assign new Rateable Values (RVs) to all properties across the country based on rental values prevailing on 1 April 2024.
It is anticipated that the draft list of 2026 Rateable Values will be released in the late autumn. For the 2023 Revaluation, the timing of the release of the draft figures was two days after the 2022 Autumn Budget. At the time of writing the date of the 2025 Autumn budget has not yet been announced. If it is held in November then it is probable that the draft list of 2026 Rateable Values will be released shortly thereafter.
At a Rating Revaluation, the Uniform Business Rate (UBR) is adjusted to ensure that the Government's overall income from business rates remains broadly revenue-neutral in real terms. Therefore, if as expected the total Rateable Value across England increases, the 2026/27 UBR will be reduced from its current level.
New Lower UBR for Retail, Hospitality & Leisure (RHL) – From April 2026
The Government has confirmed that, from April 2026, a permanently reduced UBR will apply to RHL properties with a Rateable Value below £500,000. The level of this reduction will be finalised and announced in the Autumn Budget.
Key details confirmed so far:
- The largest UBR discount will apply to properties with an RV under £51,000.
- Properties with RVs between £51,000 and £500,000 will receive a smaller UBR reduction.
The above will replace the various retail rates relief schemes which have been in place since 2020.
The Government has not yet confirmed the final eligibility criteria for classification as an RHL property. This is expected to be clarified in the Autumn Budget.
Rates Supplement for Properties with 2026 RVs of £500,000+
To fund the UBR reductions for RHL properties, the Government intends to impose a rates supplement on properties with a 2026 RV of £500,000 or more.
This will affect a broad range of property types, including:
- Large distribution warehouses
- Large offices
- Universities and hospitals
- Anchor retail stores, many of which play a vital role in attracting footfall to town and city centres
Given that the Government’s stated aim in introducing UBR cuts is to “support the High Street,” it is unsurprising that there has been a backlash from large anchor retail stores. These retailers — who play a key role in driving footfall — will also be required to pay the rates supplement, effectively funding lower bills for other, often competing, retailers. The Autumn Budget will confirm whether the Government intends to revise its proposal and exempt retail properties with a Rateable Value over £500,000 from this additional charge.
