Pub owners may see higher bills under 2026 Business Rates Revaluation
Business rates are changing, and the last thing you want is to be caught unprepared, facing a bill that’s higher than you expected or that doesn’t accurately reflect your business’s value.
The Valuation Office Agency (VOA) has reassessed every commercial property in England and Wales using data as of 1 April 2024. The new rateable values were released in late 2025 and will form the basis of bills from April 2026.
According to Carroll Accountants director David Burr, most pubs’ rateable values and overall payments have gone up.
‘I’ve seen some double,’ he adds.
Plus, the Retail, Hospitality and Leisure (RHL) Relief is ending, adding to pubs’ tax woes.
For pubs, these changes can be significant. Some high-street or city-centre locations have softened, while popular suburban or tourist-heavy areas have held steady or climbed. Fit-outs, extensions, garden structures, and changes in trading style can also influence the new figure.
In short: don’t assume your current rateable value will remain anywhere close to what you see in 2025.
This blog will help you understand what’s changing, how the new valuation works, and what steps you can take now to avoid being blindsided when the first 2026/27 bill arrives in March 2026.
How Your Business Rates Bill Is Calculated
Your pub’s business rates bill isn’t just a straight read of the rateable value. The actual bill you pay depends on three things:
1) Rateable value: The Valuation Office Agency (VOA) estimates a pub’s Rateable Value (RV) using the Fair Maintainable Trade method. This looks at what a reasonably efficient operator could earn (turnover excluding VAT) in a year, factoring in location, services (food, rooms), rent, and comparable pub incomes. This is translated into a hypothetical annual rent to set the RV.
David describes this system of using potential rather than actual profit as unfair to pubs.
‘We have been promised that the valuation methods for hospitality will be reformed by the last two governments now, but the VOA is still using the unfair method of valuing the business on estimated turnover, not even actual, instead of profit potential like tied rents,’ David said. ‘I’m also disappointed that every three years we complete a VOA form showing actual turnover, and they still use FMT, which is almost always incorrect.’
2) The multiplier: The government sets this figure to determine how much tax you pay for each pound of rateable value. It is reviewed annually and usually comes in two versions: the standard multiplier and the small business multiplier, which is lower and applies to qualifying pubs. The government confirms the multipliers as part of the annual Budget process, and local councils publish the final figures on their business rates pages and include them on bills. Until the multiplier is confirmed, it isn’t possible to calculate an exact business rates liability, even if you know the rateable value.
3) Reliefs and exemptions: See the next section for details on reliefs that are likely to apply to your pub.
Because all three parts move independently, a rise or fall in rateable value doesn’t necessarily mean your final bill will rise or fall by the same percentage. For example, the government may change multipliers or adjust reliefs in the same year as a revaluation. That can soften increases, amplify them, or occasionally leave bills largely unchanged despite a shift in the headline value.
Reliefs That Matter for Pubs
Reliefs often make the difference between a manageable bill and one that bites. Understand which reliefs you may qualify for and how they could change.
● Retail, Hospitality and Leisure (RHL) Relief: The RHL relief that many pubs depended on is going away by March 2026.
● Small Business Rate Relief (SBRR): Single-site pubs with a rateable value of less than £15,000 qualify for small business relief. Those valued lower than £12,000 will not pay business rates at all.
● Rural Rate Relief: If your business is in a qualifying rural area and is the only pub in the area, you may be eligible for the rural rate relief, a 50% or even 100% relief. This is worth checking if you’re outside a major town.
● Local Discounts and Hardship Relief: Local councils can grant discretionary discounts in certain circumstances. These aren’t guaranteed and often depend on local policy, but they’re still worth exploring if your pub faces unusual trading pressures.
Reliefs can change from year to year, and they often shift around revaluation periods. A pub that received generous support under one scheme might get far less under the next, or vice versa. Relief eligibility and caps can make a bigger difference to your bill than the revaluation itself.
Transitional Relief: Why Your Bill May Change Gradually
Not every pub will feel the full effect of the 2026 revaluation or the withdrawal of Retail, Hospitality and Leisure (RHL) relief straight away. That’s because transitional relief is designed to phase in large changes to business rates bills over time.
Under the 2026 scheme, the government has set annual caps on how much a bill can increase or decrease following revaluation. These limits are written into the business rates regulations and depend on the rateable value band your pub falls into. Local authorities apply the rules automatically, so you don’t need to apply for this relief.
What this means for you:
● If your pub’s rateable value increases sharply, transitional relief limits how much your bill can rise each year. You won’t jump straight to the full post-revaluation bill; instead, the increase is phased in over multiple years.
● If your rateable value falls, the benefit may also be phased. In other words, you might not see the full reduction immediately, even though the valuation has gone down.
● The rules are not the same as previous revaluations. Each revaluation cycle comes with a new set of caps and percentage.
● Transitional relief adjusts the bill, not the valuation. Your rateable value still stands for appeals, relief eligibility, and comparisons with similar pubs — even if your payable bill is temporarily higher or lower due to transitional rules.
Read the government’s guidance for determining your transitional relief.
Understanding the Check and Challenge Process
Pubs often have features that can be mismeasured, misrecorded, or incorrectly interpreted, like trading areas added or removed over the years. Even minor factual errors can shift a valuation enough to matter.
If your pub’s valuation feels off, the Check and Challenge system is the legal route to fix it. It’s worth understanding it now, because once 2026 values go live, delays in starting a Check can push back any reduction you’re entitled to. An RICS-regulated valuer can assist in this process.
1. Check
“Check” is the first stage. You review the property and Fair Maintainable Trade details the VOA holds and submit corrections if anything is wrong or outdated. If the facts are inaccurate, you can supply evidence. The VOA then updates the record if they agree.
This step has to be completed before you’re allowed to move to the next stage.
2. Challenge
Once the facts are agreed, you can file a “Challenge” if you believe the actual rateable value is too high based on changes affecting your trading potential.
● This is where you present your case and submit supporting evidence.
● The VOA will review it and issue a decision. If you still disagree, there’s an appeal stage through the Valuation Tribunal.
How Pubs Can Prepare Now
You don’t need to wait for your bill to land before getting your house in order. A bit of groundwork now makes the revaluation far less painful later.
1. Set up a Business Rates Valuation Account
If you don’t have one already, set up a Business Rates Valuation Account. This gives you direct access to your property’s details and, once released, your new 2026 rateable value. You’ll need this to correct mistakes or start the Check process.
2. Review your current property details
Most valuation errors come from outdated or incomplete information. Make sure that the VOA’s record of your pub is accurate and that they’re aware of any factors that may impact trading.
3. Gather your evidence early
Have the following ready, as they may be needed for a Check or Challenge:
● Lease agreements and rent reviews
● Tenancy-at-will or tied agreements
● Trading information
4. Estimate your likely bill
Now that multipliers have been announced, you can plug your new 2026 rateable value into the GOV.UK calculator and get a realistic forecast. Do this early to spot cashflow problems before the bill arrives.
5. Talk to your local council about reliefs
Councils often implement reliefs slightly differently, and some require applications. Make sure you understand:
● Eligibility
● Caps
● Deadlines
● Whether transitional rules apply to you
6. Don’t leave corrections until the last minute
If something looks wrong, start the Check promptly. Long queues form after every revaluation, and pubs that delay tend to pay more than they should for longer than they need to.
7. Consult an RICS valuer
If you want an independent view of whether your new rateable value is likely to be fair, it’s worth speaking to an RICS-regulated valuer, a chartered surveyor who specialises in business rates. David recommends Christie & Co. or Fleurets.
They can:
● Review your current and upcoming rateable value
● Assess whether the VOA’s assumptions about your property and trading potential appear reasonable
● Estimate whether you have grounds for a Check or Challenge once the 2026 list goes live
● Provide professional valuation evidence that carries weight in the Challenge process
This step isn’t essential for every pub, but it’s especially useful if you’re in a location where trading has changed significantly since your last valuation. An RICS valuer gives you a clearer picture before you commit time or money to the formal VOA process.
How Carroll Accountants Can Help
A rise in your business rates can quickly snowball into higher costs, tighter cashflow and real pressure on your bottom line. You may be facing difficult decisions about staffing, stock, maintenance, and investment.
Carroll Accountants can help you build a cashflow that keeps your pub stable, even if rates rise.
Contact us to get ahead of the 2026 revaluation and protect your business before the new bills land.