"Cushman & Wakefield has released its latest modelling ahead of the 2026 business rates revaluation, revealing a significant redistribution of liability across sectors and regions. Based on rental values as of 1 April 2024, the revaluation will come into effect on 1 April 2026 and will have a material impact on occupiers and investors throughout the UK. According to Cushman & Wakefield's calculations, total rateable values will increase significantly across the UK with aggregate rateable values in England set to rise on average by 11.4% to £79.9 billion."
"Mike Flecknoe, Head of Rating UK at Cushman & Wakefield, said, "The 2026 revaluation reflects a market that has evolved considerably since the last cycle. Our analysis shows that while some occupiers will benefit from reductions, others - particularly in prime office and logistics locations - should prepare for substantial increases.""
"An increase in rateable value does not necessarily translate to higher liability, as this also depends on what multiplier is applicable - with these also set to change in April. According to Cushman & Wakefield's calculations, discounted multipliers for qualifying retail, hospitality and leisure ratepayers in England (the RHL Multiplier) will result in a £2.17 billion revenue shortfall for the government. This will be paid for by the c.20,000 properties in other sectors whose rateable value will be £500,000 or above and therefore impacted by a new High Multiplier."
The 2026 business rates revaluation uses rental values as of 1 April 2024 and takes effect on 1 April 2026. Aggregate rateable values in England are projected to rise by 11.4% to £79.9 billion, led by a 28.64% increase in logistics and industrial. Scotland rateable values are expected to rise by 10.45% to £8.2 billion and Wales by 5.38% to £2.8 billion. Changes in multipliers will influence actual liabilities. Discounted multipliers for retail, hospitality and leisure create a £2.17 billion revenue shortfall funded by higher multipliers on roughly 20,000 large-value properties, with offices and industrial sectors bearing substantial additional costs.
Read at London Business News | Londonlovesbusiness.com
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