While the reform aims to modernise the system, the growing number of multipliers and reliefs has made rates bills increasingly difficult for businesses to understand and in some cases, has increased the potential for errors.
According to Dunlop Heywood’s Rating Mitigation & Audit Director, Rob Madden, the biggest change from an audit perspective has been the incorporation of the Retail and Hospitality discount into the charge multiplier itself, rather than applying it as a separate percentage relief.
“Previously, businesses could clearly identify the retail discount and see exactly how it affected their bill,” explains Rob. “Now, with various charge multipliers being used, the calculations have become far more complicated.”
More Complexity Means More Opportunity for Error
Business rates have never been straightforward, but the 2026 changes have introduced additional layers of complexity. Where ratepayers previously had a small number of multipliers and a clearly identifiable discount, there are now several variables involved in calculating the final charge.
As a result, understanding how liabilities have been calculated has become increasingly difficult for the average ratepayer.
“Adding additional variables into a business rates calculation means an increased chance of misunderstanding and misapplication,” says Rob.
While many people focus solely on the final amount due, the route taken to arrive at that figure is often just as important.
Errors Are Already Beginning to Emerge
Since the new rating list came into effect, Dunlop Heywood has already identified a number of inconsistencies when reviewing rates bills.
One area causing concern is the use of the previous-year figures. In many cases, the 2025/26 charge forms part of the calculation for the current year’s liability and errors in historic figures can have a direct impact on what businesses are being asked to pay in 2026/27.
New measures introduced to mitigate a ratepayer’s loss of relief from previous years have also created new challenges. Although local authorities appear to be working to correct issues as they arise, incorrect charge calculations have already been seen.
These examples highlight just how important it is for businesses to ensure their bills have been calculated accurately.
Understanding the Bill is Only Half the Challenge
For most ratepayers, the final figure is understandably the primary concern. However, many businesses do not have the detailed knowledge required to fully challenge an incorrect bill or present a robust case to their local authority.
With operating costs continuing to rise, ensuring that liabilities are accurate has never been more important.
“Reducing rates paid is vital for many businesses and is often the difference between whether they can be successful, or even survive,” says Rob.
Why Specialist Reviews Matter
As the rating system becomes more complex, specialist reviews are becoming increasingly valuable. A professional review can provide reassurance that liabilities are correct, while also identifying opportunities for savings where errors have occurred.
At Dunlop Heywood, our Rating Mitigation & Audit team works on a no-win-no-fee basis, giving businesses peace of mind that if no saving is identified, the review itself comes at no cost.
With the 2026 rating list now in effect, reviewing your rates bill could help reduce risk, uncover savings and provide confidence that you are paying only what you should.
