What is Revaluation and what does it mean for business rates bills?

If rental values in your area have increased since the last revaluation, your RV may rise, resulting in a higher business rates bill. This will almost certainly be the case for high street traders this revaluation.

However, if rents have fallen, you could see a reduction in your business rates.

Retail, hospitality, and office spaces have been particularly affected by changing demand post-pandemic, with some occupiers seeing reductions in RV.

Industrial and logistics properties, where demand surged throughout the pandemic, have faced significant increases in business rates.

The government provides Transitional Relief to phase in large increases or decreases in business rates over time, preventing sudden financial shocks, however, the reality is that the financial burden is still felt – particularly on the already ailing UK high street.

Some businesses may also qualify for Small Business Rate Relief or other support measures.

While revaluation redistributes the tax burden, it doesn’t necessarily increase overall business rates revenue—the government adjusts the Uniform Business Rate (UBR) multiplier to maintain balance.

However, changes in relief schemes and policy decisions can affect how much you pay.