Navigating the Business Rates landscape: What occupiers need to know

With appeal deadlines approaching, a new rating list on the horizon, and structural reforms due to come into force from 2026, occupiers face both challenges and opportunities.

In the coming months, businesses should start the planning process, enlisting the support of business rates experts to mitigate cost increases and avoid missed opportunities.

The countdown to the end of the 2023 Rating List

Under the 2023 Rating List, occupiers have been paying business rates based on rental values set at a point when the UK property market was still heavily influenced by the pandemic.

Businesses that believe their assessments are too high have until 31 March 2026 to begin an appeal for backdated refunds, after which any potential refunds or reductions relating to the current list will no longer be available. As reviewing rates involves data gathering, analysis, and statutory checks before an appeal can even begin, occupiers should act now to avoid missing out on significant savings.

Practical preparation includes ensuring that all properties are correctly registered on the Government’s business rates portal, and that a qualified advisor is authorised to act on the occupier’s behalf before the deadline.

The 2026 Rating List: increases expected across most sectors

The next revaluation, taking effect from April 2026, will be based on property rental values as of April 2024, a market that looked very different to 2021, a point in time when rents were still quite depressed due to the impact of the pandemic. The 2026 list will reflect post-COVID recovery, meaning increases in rateable values are widely expected across sectors such as offices, life sciences, industrial, and leisure.

The Autumn Budget on 26 November 2025 will be a key milestone, with a draft of the new rateable values expected to be published. Although these will be provisional figures, they provide a short window for occupiers to identify and challenge any errors before they are formalised in 2026.

Appointing an advisor as soon as possible after the Budget will be critical for occupiers, who could potentially secure significant reductions through early review of the draft list - identifying any factual errors can prevent costly over-assessments before they take effect.

The multiplier shift: a double impact for larger occupiers

Alongside revaluation, the government is also planning changes to the business rates multiplier - the tax rate applied to rateable values.

While retail occupiers have historically benefited from government relief schemes, this support is being restructured. From April 2026, retailers will receive a lower multiplier, but this will be offset by a higher multiplier for properties with a rateable value above £500,000.

This change will disproportionately affect large occupiers such as corporate offices, logistics operators, and supermarkets, many of which will face a “double hit”: higher property valuations combined with a higher tax rate.

Recent industry lobbying has focused on exempting large food retailers from the higher rate, though this could shift the burden even further toward office and industrial occupiers if implemented. Our Business Rates team is monitoring these developments closely to advise clients once the Budget details are confirmed.

Preparing for the new Duty to Notify

Another major reform due from 2026 is the introduction of the Duty to Notify, which will make it the responsibility of ratepayers to proactively inform the Valuation Office Agency (VOA) of any changes affecting their property or lease.

Under the new system, occupiers will be obliged to declare alterations such as refurbishments, extensions, or changes in occupation within a set timeframe, with failure to comply leading to financial penalties once the system is fully operational. The new system will begin a phased rollout in April 2026 and is expected to be completed in 2029.

Although the change may represent an additional administrative challenge, particularly for occupiers with large or complex portfolios, it may also present an opportunity for businesses to streamline their compliance processes and maintain up-to-date, accurate valuations.

The importance of early action

The financial and operational impact of these reforms will vary, but for many occupiers - especially those in high-value city centre offices and growing industrial markets - the cost implications could be considerable.

The next 6 months represent a critical window for occupiers to review their positions, prepare for change, and budget for potential increases. Proactivity, together with expert insight and data-driven analysis, will help occupiers navigate this complex transition - ensuring that they remain informed, compliant, and well-positioned for the next phase of the rating cycle.

To find out more about how we can support your business rates strategy or prepare for the 2026 revaluation, please contact our Business Rates team.