What the Latest Government Review Means for SMEs
Business rates remain one of the most significant fixed costs for UK businesses, and 2026 will bring major structural changes following the government’s ongoing review into the business rates system. With rate revaluations, digitalisation of the valuation process, and sector-specific adjustments expected, SMEs need to prepare now to manage their liabilities and take advantage of reliefs.
Recent government consultation papers and statements indicate a continued commitment to:
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More frequent property revaluations, moving from five-year to three-year cycles
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Better targeting of reliefs to sectors still struggling with post-pandemic recovery
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Expansion of digital reporting to streamline compliance and transparency
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Potential reform of the Small Business Rates Relief (SBRR) eligibility thresholds
Why This Matters for SMEs
Many businesses — especially those in retail, logistics, hospitality and property-heavy sectors — have seen rateable values increase significantly after the 2023 revaluation. A 2026 adjustment could increase these further unless transitional reliefs are applied.
Key considerations:
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Cashflow uncertainty — businesses need forward modelling to anticipate rate changes.
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Sector-specific impacts — hospitality, industrial units, and high-street retail are expected to be most affected by the next valuation cycle.
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Relief eligibility changes — possible adjustments to SBRR may help more micro-businesses, but may tighten rules for multi-site operators.
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More frequent reporting — Companies may soon need to update property improvement data digitally.
What Businesses Should Do Now
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Check your current rateable value (RV) — many SMEs do not realise their RV is outdated or based on incorrect assumptions.
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Review eligibility for reliefs — SBRR, rural rate relief, and charitable reliefs should be reassessed annually.
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Model 2026–27 liabilities — use scenario planning to anticipate worst-case RV increases.
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Plan property improvements strategically — some improvements may soon qualify for temporary “investment relief” to encourage growth.
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Prepare for digital reporting — ensure you have accurate property records, floor plans, and lease details ready for future digital uploads.
How We Can Help You
With frequent revaluations coming, businesses need proactive financial planning rather than reactive bills. Accountants can:
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Review rateable values and spot errors
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Provide projections for 2026–2028 liabilities
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Manage appeals and VOA submissions
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Advise on relief eligibility and property cost planning
Frequent revaluations mean the winners will be businesses who forecast early and take advantage of available reliefs.
Contact us to arrange a business-rates review with our advisory team — make sure you’re ready for 2026