Tomorrow marks a significant day for businesses and property owners: the Valuation Office Agency (VOA) is expected to publish the draft 2026 Rating List, coinciding with the Government’s Budget announcement. This revaluation will set new Rateable Values (RVs) for the next rating period (2026 – 2029), and the impact will be felt across every sector.
Why This Matters
Business rates are calculated based on Rateable Values, which aim to reflect the open market rental values of property as at 1 April 2024. While the system aims to be revenue-neutral overall, the changes will redistribute liabilities—some sectors will see sharp increases, others welcome reductions.
Key Trends by Sector
Industrial & Logistics
- Biggest winners? Not quite. Strong rental growth since 2021 means RVs could rise 20–35% nationally, with the South East seeing the steepest hikes.
- Large distribution warehouses may face an additional high-value multiplier if RV exceeds £500,000.
Offices
- Hybrid working bites. Secondary offices and regional hubs may see reductions of around 10%, but prime Grade A offices in London could surge by 30–40%.
Retail, Hospitality & Leisure
- High streets under pressure. Expect reductions of 10–20% for struggling retail locations.
- Prime retail in London and the South East may see modest increases.
- From April 2026, lower multipliers for RHL properties under £500k RV will replace temporary relief schemes.
Emerging Sectors
- Data centres, last-mile delivery hubs, and flexible workspaces are set for sharp RV increases, reflecting strong demand and rental growth.
Regional Picture
- London & South East: Significant increases for industrial and prime office space.
- North & Wales: Retail and office RVs likely to fall, while industrial rises moderately.
New Business Rates Multipliers
From April 2026, the government will introduce a five-multiplier system, replacing the current two-tier structure:
| Multiplier | Applies to |
| Small Business RHL | Retail, Hospitality & Leisure (RHL) properties with RV below £51,000 |
| Small Business Non-RHL | Non-RHL properties with RV below £51,000 |
| Standard RHL | RHL properties with RV £51,000–£499,999 |
| Standard Non-RHL | Non-RHL properties with RV £51,000–£499,999 |
| High-Value | All properties with RV £500,000 and above |
Key points:
- Permanent lower multipliers for RHL properties under £500k RV.
- High-value multiplier for RVs over £500k (affecting <1% of properties, mainly large warehouses and offices).
- Legislative safeguards:
- High-value multiplier cannot exceed the standard multiplier by more than 10p.
- RHL multipliers cannot be more than 20p lower than the small business multiplier.
- Rates for each multiplier will be confirmed in the Autumn Budget.
Summary of Likely Movements
| Sector | Trend in RVs |
| Industrial & Logistics | +20–35% |
| Prime London Offices | +30–40% |
| Secondary Offices | -10% or more |
| High Street Retail | -10–20% |
| Prime Retail (London) | +5–10% |
| Data Centres / Last Mile | Significant increases |
What Should You Do Now?
- Review your draft RVs immediately when published.
- Budget for potential increases, especially if you own industrial or prime office assets.
- Plan your appeal strategy early—the Check, Challenge, Appeal process can be time-sensitive.
- Factor in new multipliers when forecasting liabilities.
Bottom line: The 2026 Rating List will reshape the business rates landscape. Understanding these changes now will help you stay ahead of the curve, we are on hand to discuss your rating assessment with you on 0808 175 6434.
