Business Rates revaluation 2026: What retailers need to know

The latest Rating List, which came into effect on 1 April, reflects the recovery in retail rental values following the pandemic. However, higher valuations are only part of the story. Changes to relief and the introduction of new multipliers mean the way liabilities are calculated has also shifted – creating clear winners and losers across the sector.  

The 2026 Rating List

When considering movements in rateable values on the new Rating List, it’s important to understand the starting point.

In the previous 2023 Rating List, rateable values reflected rental values at a valuation date of 1 April 2021. At that time, the country was still in lockdown and only non-essential shops were permitted to open. Rental values – and therefore rateable values – remained low.

For the 2026 Rating List, the valuation date is 1 April 2024. The new rateable values therefore reflect the change in the retail market between April 2021 and April 2024, capturing the post-Covid recovery. For most town centres and shopping centres, this has resulted in increases in rateable value. 

For many retailers, this represents a material reset after an unusually low base. Across England and Wales, retail rateable values have increased on average by 9%, encompassing all retail pitches from primary through to tertiary. Increases in prime shopping centres and town centres have been significantly higher. Notable uplifts include:

• Bath: +71%
• Watford: +69%
• Merry Hill: +38%
• Bristol: +37%
• Liverpool: +36%
• Birmingham: +35%
• Plymouth: +31%

London has also seen significant increases, including:

• City of London: +44%
• Westfield Stratford: +44%
• Westfield Shepherds Bush: +44%
• Canary Wharf: +40%
• Lakeside: +35%

Changes to Retail Relief

Since Covid, retailers have also benefitted from substantial discounts under Retail, Hospitality and Leisure (RHL) relief. 

The level of support had already reduced from a 75% discount in 2024/25 to 40% in 2025/26. This relief has now been removed entirely and replaced with two new, permanently lower multipliers.

The new multipliers have been set at £0.382 for properties with a rateable value below £51,000, and £0.430 for properties between £51,000 and £499,999.

However, on a single property, these new multipliers are less generous than the previous 40% RHL relief. This means many retailers will now pay more on their rates bills, even before accounting for increases in rateable value.

In addition, the lower multipliers only apply to properties with a rateable value below £500,000. Properties above this threshold are subject to a higher multiplier of £0.508.

The result is a double impact for many retailers: higher rateable values combined with reduced Government support.

How the impact differs across the sector

While the previous 40% RHL relief was more generous at an individual property level, it was capped at £110,000 per business.

This particularly benefitted smaller retailers with one or two stores, who could claim the full discount without reaching the cap. Larger, national retailers reached this cap quickly and therefore received relatively limited overall support.

The new lower multipliers are uncapped. While less generous on a single property, they can deliver greater total savings across large portfolios.

The overall effect is a structural shift in support. The previous system favoured SMEs, while the new approach provides relatively greater support to larger retail chains.

Transitional Relief

Transitional Relief will help to phase in increases in rates bills, limiting how quickly costs rise.

With most retailers seeing increased liabilities, transitional relief caps the pace at which bills can increase over the coming years.

^{All caps are before other reliefs, local supplements, and in years 2 and 3, inflation. Caps are cumulative.}

The structure and timing of relief will vary depending on the scale of change in liability.

Key actions for ratepayers

Each revaluation provides an opportunity for ratepayers to review and challenge their assessments where appropriate.

With the Valuation Office Agency reassessing every property, it is important that retailers review their new valuation in detail and consider whether it has been set at the correct level. Appeals may also be possible where trading conditions are affected by external factors, such as nearby development or infrastructure works.

It’s important to recognise that rateable values can increase as well as decrease through the appeals process. As a result, professional advice should be taken before pursuing a challenge. Early review and informed decision-making will be key to managing liabilities effectively over the life of the list.

Preparing for new information requirements in England

The 2026 revaluation also coincides with the phased introduction of new information requirements for ratepayers in England.

Once implemented, businesses will be required to notify the Valuation Office Agency of changes affecting their properties – including occupation, leases and physical alterations – within defined timeframes. Annual confirmation requirements will also apply.

This represents a significant shift in responsibility for ratepayers. For retailers managing multiple stores or frequent lease events, this is likely to require more structured internal processes and closer oversight of property data.

How Knight Frank can help

The 2026 Rating List brings higher rateable values and changes to Government support into sharper focus for retailers. We can support occupiers by:

• reviewing and interpreting 2026 Rating List assessments
• benchmarking properties against relevant rental evidence
• identifying and pursuing appropriate challenge opportunities
• modelling liabilities across assets and portfolios
• advising on the rating impact of lease events, refurbishments and store changes
• supporting occupiers in England to prepare for Duty to Notify and wider compliance requirements  

For tailored advice on how the 2026 Rating List affects your retail portfolio, please contact our Business Rates team.