Marina business rates U-turn: Clarity, context and what operators should do next

Over 720 commercial marinas across the UK are set to benefit from reduced business rates from April 2026 following a Treasury reversal on marina eligibility for lower multipliers.

The decision has been widely welcomed across the leisure marine sector, bringing much-needed clarity ahead of the next revaluation cycle and confirming that marinas sit firmly within the UK’s leisure economy.

For Vail Williams, which advises a number of the UK’s leading marina operators across multi-site portfolios, the announcement represents a victory for common sense, albeit one that must be viewed in the context of wider rating pressures now facing the sector.

Adam Barnfield, Head of Business Rates and Ian Froome, Head of Marine & Leisure, explore what the impact of the Government’s latest U-turn might have.

The Valuation Office Agency has updated the rateable values of all non-domestic properties in England and Wales, with revised assessments forming the basis of liabilities from April.

At the same time, the Government confirmed that from 2026/27, existing retail, hospitality and leisure (RHL) reliefs would be replaced by a permanent lower business rates multiplier for qualifying properties.

Initially, marinas were expressly excluded from the scope of the new RHL multipliers and would instead have been assessed using the higher standard multiplier applied to non-RHL properties. This was despite many local authorities already recognising marinas as leisure assets for rating purposes.

Following a concerted campaign supported by British Marine, the Treasury confirmed a refinement to the Statutory Instrument defining eligible properties.

In a letter to British Marine’s Chief Executive, Lesley Robinson, Dan Tomlinson, Exchequer Secretary to the Treasury, acknowledged that marinas are distinct from transport infrastructure and form part of the infrastructure of leisure activity. He confirmed that the Statutory Instrument will be amended so that marinas are removed from the list of excluded properties.

The Government’s recognition that marinas sit within the leisure and recreational economy, rather than transport infrastructure, has been welcomed across the sector.

Ian Froome, Partner and Head of Marine & Leisure at Vail Williams, commented:
“This U-turn is indeed welcome news, at a time when UK marina operators and their tenants are balancing intense operational and economic headwinds. This reversal represents a material financial benefit for qualifying marina businesses and removes the risk of a sharp increase in rates liabilities that would otherwise have arisen from April 2026.”

Adam Barnfield, Partner and Head of Business Rates at Vail Williams, added:
“The Government has confirmed that this change is consistent with its original intention for the new multipliers to broadly reflect the scope of the current RHL relief, under which many local authorities already recognise marinas as qualifying leisure properties. Updated guidance will be issued, and local authorities will be formally notified of the amendment ahead of implementation.”

A welcome change but not a cost-free outcome

While the policy reversal is clearly positive, it does not negate the broader impact of the latest revaluation.

Average rateable values applied to marinas have increased by around 23%, with an additional £5.8 million of rateable value across the sector, equating to approximately £2.5 million in additional revenue for the Treasury.

Adam added: “This U-turn will benefit the vast majority of marinas which qualify for the lower business rates multipliers. However, the increase in rateable values and the removal of existing RHL relief will still have a significant impact on overall business rates liabilities.”

Ian Froome concluded:
“We cannot say there will be euphoria regarding this refinement in the revaluation process, but it does act as a cushioning of the significant increases faced by marina operators. There will still be increased costs all around.”

What does this mean for marina occupiers and operators?

In practical terms, the change preserves rate parity with other leisure and hospitality uses, improves cost certainty and forward budgeting and supports ongoing investment in marina infrastructure and services. It also reinforces the marina sector’s role within the UK’s leisure and tourism economy.

The clarification also provides reassurance for mixed-use sites. Riverboat-related properties will only be excluded where they are wholly or mainly used for public transport. Properties used primarily for recreational or leisure riverboat services will remain eligible for the lower multipliers.

However, eligibility for the lower multiplier is not automatic.

Key considerations include:

• Whether the marina is wholly or mainly used for leisure or recreational purposes.
• How mixed-use elements, sub-lettings and ancillary commercial uses are treated.
• Whether the rateable value assessment fairly reflects operational reality.

Without careful review, operators risk overpaying business rates, misclassifying mixed-use elements, or missing eligibility for the lower multipliers altogether.

This is particularly true for complex marina estates combining berthing, boat services, hospitality, retail and tourism use.