Business Rates After the 2026 Revaluation: What the Budget Could Change

Business rates are the commercial property occupation tax that most frustrates small businesses — and the one most likely to feature in Autumn Budget announcements. The 2026 revaluation changed the rateable values across England. Now the Budget may change the rules again.

What happened at the 2026 revaluation

Rateable values were updated from April 2026 to reflect rental values as at April 2021. For many businesses in recovering town centres, logistics locations, and out-of-town retail, this meant higher rateable values — and therefore higher rates bills — even where the rental market had not fully recovered since Covid. For others, particularly in struggling high streets and secondary retail, values fell.

The multiplier — the pence-in-the-pound rate applied to rateable value — determines the actual bill. The standard multiplier is currently 54.6p. For rateable values under £51,000, the small business multiplier is 49.9p. On top of this, various relief schemes reduce bills further for eligible occupiers.

What the Budget might do

Several business rates changes could feature in the Budget:

Multiplier freeze or reduction. One of the most direct forms of relief would be to hold the multiplier at current levels rather than allowing it to rise with inflation, or to reduce it outright. This would reduce bills for all rateable properties.

Retail, Hospitality and Leisure Relief. This scheme has provided 75% relief on rates bills up to £110,000 per business per year since 2022. It has been extended annually rather than made permanent. The Budget will almost certainly announce its continuation or replacement — or, in a tighter fiscal environment, its reduction or removal. Businesses in hospitality or retail that currently benefit should plan for reduced relief from April 2027.

Small Business Rate Relief threshold changes. Businesses with a rateable value under £12,000 currently pay no rates at all under Small Business Rate Relief (SBRR). Those between £12,000 and £15,000 pay a tapered rate. The Chancellor could raise these thresholds to extend relief to more businesses — or reduce them to recover more revenue.

Fundamental reform. A broader review of business rates has been proposed by successive governments. Any Budget commitment to long-term reform — such as moving to a more frequent revaluation cycle, introducing a different tax base, or replacing rates with a levy on land values — would be significant but unlikely to take effect immediately.

What this means for your premises decision

If you are searching for new commercial space, business rates should be part of your total occupancy cost calculation from day one. Ask the landlord or their agent for the current rateable value and the applicable multiplier — then calculate what you will actually pay before and after any reliefs you qualify for.

If you are in an existing property and your rateable value increased at the April 2026 revaluation, you can still challenge it through a Check, Challenge, Appeal (CCA) process via the Valuation Office Agency. A formal challenge requires evidence that the rateable value does not reflect open market rental evidence at the April 2021 valuation date.

RE:match connects businesses directly with landlords and agents who have space matching their requirement. When you post a brief, you can specify your maximum occupancy cost budget — including rates — so responses come from landlords who understand your numbers. Post your requirement at rematch.co.uk.