The 2026 business rates reform introduces updated valuations, revised multipliers and new reporting obligations that will affect non-domestic property owners. While these changes aim to modernise the system and adapt to changing values of land, they may lead to significant bill increases for some non-domestic landowners.
The revaluations of properties reflect shifts in the rental market. The 2026 update is expected to produce tax increases for many businesses, particularly those in rural areas or sectors that have expanded or diversified in recent years. Revaluations alter tax burdens to reflect current market conditions. Rising rent means that properties which have become more commercially attractive may now carry higher valuations.
Transitional arrangements are in place to help soften the initial blow on ratepayers, but it is important for businesses to review how their valuation may change and what this means for future budgeting.
The government will also introduce updated multipliers, the figures used to convert a property’s ‘rateable value’ into its annual bill. Different multipliers apply depending on the type and size of the property, with separate categories for small businesses, retail and hospitality, and high-value premises. These adjustments mean that two businesses with similar valuations may still face different liabilities depending on their classification.
The multipliers do not affect all sectors equally. Some are seeing smaller changes, while others may experience more noticeable increases. Understanding which multiplier applies is important in understanding the impact these alterations could have on a business.
Despite the expected rise in valuations, several reliefs continue to provide important support. Small Business Rates Relief, Empty Property Relief and Sector-specific Reliefs can reduce liability for select ratepayers. These reliefs are not being removed, but their impact will depend on how a property’s valuation changes in 2026. Businesses should review their eligibility early, particularly if they operate multiple sites or have recently changed how their property is used.
Perhaps the most substantial reform is the introduction of a statutory duty to notify. From April 2026, ratepayers will be required to report certain changes—such as alterations to the property, changes in occupation or updates to rental information—within a set timeframe. An annual confirmation will also be required. This shift moves the system closer to a self-assessment model, aiming to improve accuracy and ensure valuations remain up to date.
Failure to comply may lead to penalties or limit the ability to challenge a valuation, making clear internal processes essential.
With the 2026 reforms approaching, businesses should review their current valuations, assess potential changes, check eligibility for reliefs and establish procedures for reporting notifiable events now. Early preparation will help ensure compliance and reduce the risk of unexpected liabilities.