Business rates: time for the government to look through a new prism

April 2026 marks a watershed moment for rates – another valuation and another big rise in rateable values. Historically these revaluations have happened on a five-year cycle with a few delays. Some values were suppressed for the COVID years, but the rateable values have been on the up at every other revaluation.

So, how can you plan for these increases as a business?

The simple answer is that you can’t. The rateable value always seems to outstrip inflation with values often increasing two or threefold over the five-year period.

The construct of the business rates system is complicated and comprises of:

• The ‘rateable value’ – prescribed by the Valuation Office Agency (VOA) in April 2026 – can be appealed through check, challenge, appeal
• The ‘multipliers’ set annually by national Government (new one for 2026)
• Reliefs applied by local authorities
• Business rates bills being send out by local authorities

So when there are problems, it is important to know where to challenge, or you could miss the boat.

From April 2026 there are reductions in the business rates multipliers across the board of 6.6-7.7p in the pound from what they were in 2025. From April they will be small rate of 43.2p and for those above £50k rateable value it’s 48p.

Now, things become more complex. In previous years annual relief was given to Retail, Hospitality and Leisure (RHL) businesses at 70%, and last year was 40%. But things from April 2026 are not so positive.

The government announced a permanent reduction on the multiplier of 5p for RHL businesses (i.e just under 10%) for those with a rateable value of up to £100,000 in England. In Wales this relief is limited to a max rateable value of £50k and is only applicable to retail, not hospitality and leisure – learn more about the situation in Wales here.

The outcry resulting from huge increases in rateable value, which was nowhere offset by the reduction in the multiplier, was clear to hear. However, the government has, so far, only moved to help by introducing a further relief for pubs and live music venues by giving them a further 15% reduction in multiplier in England.

As you can see in the table below, transitional relief has been reworked this year to give a phased increase to rates over the next three years, after which full rates will be payable.

There are also measures for properties that find they have exceeded the ceiling for small business rate relief (or in England for those that cease to be RHLs).

The government has a consultation on business rates and investment, looking at moving from a slab approach to a banding system (like income tax), as well as the role of investment reliefs, methodology, small business rate relief and empty property relief.

However, in the CLA’s view, the consultation missed the point that business rates are one of the main things that hamper investment. Either because they sap current resources or could lead to an even higher rateable value being imposed in the future.

Most businesses are facing a large increase in their rateable value which will be reflected in their final bills, albeit phased in over the next three years. The result is that these increases are not offset by the reliefs available and that rural businesses will be damaged and viability threatened.

We will be responding to the government’s consultation, but more widely the CLA is working with a coalition of other organisations who share our position, such as Make UK, UK Hospitality, CBI and Historic Houses to name a few.

The endless confusion at every revaluation, now due every three years, and constant tinkering of reliefs at and after each budget surely proves the system is broken. It must be time for a new system that sees business rates through a new prism, one that measures business performance and reflects location. It cannot simply promise radical reform for decades and not deliver a fresh solution.

As always, the CLA needs your evidence and case studies to take to government. Does this article strikes a chord with your experience? How do you budget and cope with these increases, and how are they holding your business back?

Please send your thoughts to us so that we can campaign on your behalf – reach out to us at rates@cla.gov.uk.