April 1, 2026 is only a matter of weeks away and the next business rates revaluation is already taking shape with the picture on future liabilities becoming clearer by the day.
The government has now confirmed the 2026 revaluation timetable and published future Rateable Values (RVs) online, giving ratepayers advance sight of the figures that will underpin their bills from 1 April 2026. At the same time, ministers have set out a redesigned transitional relief scheme and an expanded Supporting Small Business package to smooth the impact of the changes.
Big shifts between sectors and regions
The 2026 list will reflect movements in rental values between April 2021 and April 2024, a period that saw very different market trajectories across sectors. Industrial and logistics assets, for example, are widely expected to see some of the strongest increases in rateable value after years of elevated demand and rental growth. Offices look more mixed, with prime city-centre space holding up better than secondary stock, while retail remains highly polarised between resilient locations and struggling high streets.
Regional patterns also matter. Larger cities such as Manchester, Birmingham and Leeds are forecast to record double‑digit uplifts in some office and logistics locations, reflecting strong occupational demand. In contrast, weaker retail and office markets in some areas could translate into flatter or even reduced assessments, although individual properties will vary.
Transitional caps: how much can bills rise?
Alongside the new values, the government has set out a refreshed transitional relief scheme to cap how quickly bills can increase as the 2026 list beds in. For England, current guidance indicates that:
- Properties with an RV up to £20,000 will see annual increases capped at 5% in 2026–27, 10% plus inflation in 2027–28, and 25% plus inflation in 2028–29.
- Those between £20,001 and £100,000 will have caps of 15%, then 25% plus inflation, then 40% plus inflation over the same three years.
- Properties above £100,000 will face higher caps, with potential increases of 30% in year one followed by further staged uplifts.
These caps apply after other reliefs and will be crucial for cash‑flow modelling, particularly for portfolios containing larger, higher‑value assets.
Supporting Small Business and other reliefs
Smaller occupiers are also being targeted through an expanded Supporting Small Business scheme worth over £500 million, designed to limit steep bill rises where businesses lose small business or related reliefs at the revaluation. The government has also committed to permanently lower tax rates for hundreds of thousands of retail, hospitality and leisure properties, funded in part by a higher rate charged on properties with RVs above £500,000.
While these measures provide some protection, they also add complexity to an already intricate system of multipliers, thresholds and local supplements. Understanding how the different elements interact will be essential for accurately forecasting liabilities and avoiding unpleasant surprises when 2026 bills arrive.
Why you should act now
With draft 2026 RVs now accessible, there is a valuable window for businesses to:
- Review future assessments across their portfolio and identify outliers that may warrant challenge.
- Model the impact of transitional caps and Supporting Small Business relief on multi‑year cash‑flows.
- Revisit occupational strategies, particularly where large increases are anticipated in key locations or asset classes.
Early analysis can highlight where a formal check or appeal may be justified once the new list goes live, and where mitigation options – such as reconfiguration, occupation strategy changes or investment in underperforming stock – could improve the position.
How Dunlop Heywood can help
Dunlop Heywood is already working with occupiers, owners and investors to map out the implications of the 2026 revaluation at property and portfolio level. We combine detailed market insight with rating expertise to review draft assessments, project liabilities under the new transitional regime and identify opportunities to challenge or mitigate.
If you would like to understand what the 2026 list could mean for your business rates bill – and how to plan ahead before April 2026 – contact the Dunlop Heywood team to arrange a no– obligation review.