Why have my business rates gone up?
Most 2026 rises come from one of five things: the revaluation (rateable values now reflect rents at 1 April 2024), the end of the 40% retail, hospitality and leisure relief, losing small business rate relief because your value crossed £12,000 or £15,000, transitional relief phasing a rise in over three years, or a rateable value that’s set too high. Only the last one is fixed by a Challenge.
1. The 2026 revaluation
Every business property in England and Wales got a new rateable value on 1 April 2026, based on open market rent at 1 April 2024. Where rents rose, values rose. The multipliers were revised at the same time.
2. RHL relief ended
Shops, cafés, pubs, gyms and similar businesses in England got 40% off in 2025/26. From April 2026 that relief is replaced by lower multipliers, which for many works out at a smaller reduction. The 2026/27 multipliers.
3. You crossed a relief threshold
Small business rate relief is 100% at £12,000 and ends at £15,000. A value that moved from, say, £11,500 to £14,000 takes a bill from £0 to roughly two-thirds of the full charge. Supporting small business relief limits that jump in 2026/27 to £800 or a percentage cap, whichever is greater.
4. Transitional relief is phasing it in
If your bill is rising because of the revaluation, transitional relief caps the increase each year. For 2026/27 the caps are 5% (up to £20,000 RV, £28,000 in London), 15% (to £100,000) and 30% (above), before inflation adjustments in later years. So your bill may keep rising in 2027/28 and 2028/29 even if nothing changes.
5. Your rateable value may be too high
The Valuation Office values around two million properties in bulk, so mistakes happen: wrong floor areas, the wrong use, or a price per m² out of line with similar properties nearby. Those are what a Check and Challenge can correct. How to check your rateable value.
Compare your 2026 rateable value with similar properties nearby. About 30 seconds, no sign-up, no card.
What to do next
- Estimate the bill you should be getting with the calculator.
- Ask your council about reliefs you may be missing; our free relief check helps you see which might apply.
- If the value itself looks wrong, follow our Check and Challenge guide.
Questions
Why have my business rates doubled?
Common reasons are losing small business rate relief because your rateable value rose past £12,000 or £15,000, the end of the 40% retail, hospitality and leisure relief, or a large rise in rateable value at the 2026 revaluation. Transitional relief and supporting small business relief can limit the rise; ask your council.
Why is my rateable value so high?
The 2026 values reflect rents at 1 April 2024. If yours looks high compared with similar properties nearby, check the floor areas and uses in the summary valuation and compare the price per m². Wrong facts can be fixed with a Check; a value out of line may justify a Challenge.
Will my business rates keep going up?
If transitional relief is phasing in an increase, your bill can rise again in 2027/28 and 2028/29 until it reaches the full amount. Multipliers are also set each year.
- GOV.UK: Business rates revaluation
- GOV.UK: Transitional relief
- GOV.UK: Supporting small business relief
- GOV.UK: Retail, hospitality and leisure relief
- GOV.UK: Small business rate relief
Checked against GOV.UK and Business Wales on 13 October 2026. Rules change; if anything differs, GOV.UK and your council are right. Rightly Rated is not affiliated with or endorsed by the Valuation Office, HMRC or any council.
Rightly Rated is a self-serve evidence tool, not a rating surveyor or adviser. Figures come from the Valuation Office’s published 2026 rating list and from what you tell us. We do not act for you with the Valuation Office, and a challenge can lower, keep or raise a rateable value.