Business Rates 2026: A UK CFO Checklist for New Multipliers

UK CFOs should model bills under all five new multipliers now: from 1 April 2026, the Valuation Office Agency’s revaluation resets occupancy costs on every rated property in England.

Business rates have moved from a two-tier system to a five-multiplier structure, and the change lands on P&L lines that finance teams rarely revisit outside the annual budget cycle. For CFOs with retail, hospitality, leisure, office or industrial space on the books, the 2026 revaluation is not a routine update — it is a structural reset of a fixed cost that can run into millions for multi-site groups. Getting ahead of it before the next billing cycle determines whether the change shows up as a manageable line-item adjustment or a mid-year budget surprise.

What Changed in the 2026 Business Rates Revaluation?

Every rateable property in England has been reassessed against its April 2024 valuation date, and the results took effect from 1 April 2026. According to the Ministry of Housing, Communities and Local Government, the reform replaces the old two-multiplier system (standard and small business) with five distinct multipliers, splitting bills by both property type and rateable value for the first time. Retail, hospitality and leisure (RHL) properties now sit on a permanently lower multiplier rather than relying on the temporary relief schemes finance teams have had to renew, lobby for, or forecast around in recent years.

Executive Action:

• Pull your full property schedule and confirm which of the five multipliers applies to each site.
• Compare 2026/27 rateable values against the prior list to flag the largest movers.
• Brief the finance committee on aggregate exposure before the first 2026/27 invoice arrives.

Which Multiplier Applies to Your Properties?

The five multipliers split on two dimensions: property use and rateable value. Small business RHL properties under £51,000 rateable value sit on the lowest multiplier; standard RHL properties between £51,000 and £499,999 sit on a second, still-discounted rate roughly five pence below the national standard multiplier. Non-RHL small business and standard multipliers apply to offices, industrial and other commercial space. Critically, any property with a rateable value of £500,000 or more — regardless of use — moves onto a new high-value multiplier, so a flagship RHL site can lose its discount purely on size.

Executive Action:

• Flag every property at or near the £500,000 rateable value threshold for separate modelling.
• Confirm “wholly or mainly” RHL use classification for each site claiming the lower multiplier.
• Do not assume last year’s category still applies — occupancy or use changes can move a property between multipliers.

How Much Transitional Relief Can You Claim?

According to the UK Government, £3.2 billion in transitional relief has been allocated to cap the annual increase in bills for properties facing the steepest rises following the 2026 revaluation, phasing in higher costs rather than applying them in full immediately. That relief is partly funded by a new 1p supplement on the multiplier for ratepayers who do not qualify for transitional or small business support — so some CFOs will effectively subsidise others’ phase-in through a slightly higher headline rate. Relief is not automatic in every local authority system; some billing authorities apply it directly, others require confirmation. Run the aggregate exposure numbers through INFORMD’s executive self-assessment tools (informd.co.uk/tools-assessments) before finalising the budget.

Executive Action:

• Check with each billing authority whether transitional relief is applied automatically or requires an application.
• Model both the capped (transitional) and uncapped bill for the current year, not just the final target figure.
• Confirm whether the 1p supplement applies to your non-qualifying sites and add it to the budget baseline.

How Should CFOs Prepare Before the Next Billing Cycle?

The practical risk is not the policy itself but timing: rates bills land early in the financial year, and a CFO who has not modelled the new structure by then is reacting rather than planning. Start with the Valuation Office Agency’s public rating list to confirm each property’s new rateable value and multiplier category, then reconcile that against your existing budget assumptions. Where a valuation looks wrong, the Check, Challenge, Appeal process remains the formal route to dispute it — but appeals take months, so early submission matters more than a perfect case. INFORMD’s technology strategy review template (informd.co.uk/templates) offers a comparable structure for modelling recurring fixed-cost changes, and our video briefings (informd.co.uk/videos) will cover the revaluation in more depth. If your finance team needs a second opinion on the model before it goes to the board, contact INFORMD (informd.co.uk/contact).

Executive Action:

• Reconcile the VOA rating list against your property register within the current quarter.
• Route disputed valuations into Check, Challenge, Appeal immediately rather than waiting for the bill.
• Update three-year cost forecasts and board reporting to reflect confirmed multipliers, not last year’s assumptions.

Multi-site retail and hospitality groups carry the most concentrated exposure, because the £500,000 threshold and the RHL use test both apply per property, not in aggregate. A group with several mid-sized sites just under the threshold can face a materially different bill from one with a single large flagship site that tips into the high-value multiplier. Finance teams should model the estate property-by-property rather than applying a blended assumption across the portfolio — a blended estimate will misstate exposure at both ends of the size range. Facilities and real estate teams typically hold the underlying lease and valuation data, so the fastest route to an accurate model is a joint review with finance rather than a rates review run in isolation.

INFORMD provides intelligence briefings, tools and frameworks for senior business leaders across technology, finance, strategy and compliance. Based in Milton Keynes, UK, we help executives stay informed and act with confidence. Explore our full briefing library (informd.co.uk/resources) or access our free assessment tools (informd.co.uk/tools-assessments).

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