Business rates revaluation 2026: what does it mean for your business?

In November 2025, the government announced that business rates would be changing, with the much-anticipated changes including updated rateable values for all non-domestic properties.

From 1 April 2026, these new valuations will be used by councils to decide which multiplier a business qualifies for when determining rates.

Another change is the introduction of a lower multiplier: a positive step on paper. However, this was offset by the less welcome news of the end of pandemic-era reliefs. As a result, many businesses may still miss out on lower rates, particularly if higher rateable values push them above eligibility thresholds.

Therefore, the revaluation of business rates signals an important moment to understand what’s changing, what reliefs are available, and what actions businesses can take ahead of April.

What is the business rates revaluation – and why does it matter?

Business rates are based on a property’s rateable value (the estimated amount the property would rent for each year). Rateable values are reassessed every three years to reflect fluctuations in the property market.

Local councils calculate your final bill by multiplying your rateable value by a government-set multiplier, then applying any reliefs you’re eligible for. This means two things: firstly, that an increased rateable value won’t always translate into higher bills, and secondly, that reliefs can significantly soften increases. 

In recent months, business rates have been a hot topic, particularly for largely brick-and-mortar industries such as retail, hospitality, and leisure (RHL).

Major chains, industry voices, and pub landlords have spoken out against unfair and unpredictable business rates, which make it difficult for hospitality businesses to survive in what is already a difficult climate. 

What support is available for small businesses?

Properties with rateable values of under £500,000 will now have a permanently lower multiplier, which will be funded by higher rates for properties with higher rateable values.

Alongside this, the government has confirmed it will provide a support package worth £4.3bn over three years. This temporary relief package will replace the current 40% discount on business rates that RHL businesses have received since the pandemic. 

The new package is made up of a £3.2bn ‘Transitional Relief’ scheme, including specialised support for hospitality and those paying larger bills. There’s also a ‘Supporting Small Business’ scheme worth over £500m.

Chancellor Rachel Reeves also announced in recent weeks that the government would be providing specialised financial support for pubs, but this will not be expanded to the rest of the hospitality sector. 

What should SMEs do now?

You can now view your future rateable value by going to the government’s online business rates valuation service. Here, you’ll also be able to see how your valuation is calculated and flag any errors or inaccuracies before the new business rates system comes into force in April.

It’s crucial to note that you have until the end of March to challenge your current valuation. After that, you’ll only be able to challenge the new valuation.

Given that the business rates conversation is still developing with further reforms on the table, reviewing your valuation early is currently one of the few proactive steps you can take.