At UKREiiF 2025, the future of business rates wasn’t just a topic, it was the conversation.
Dunlop Heywood’s panel session, Business Rates: Challenges, Changes and Opportunities, brought together leading experts to unpack one of the most pressuring costs facing UK businesses today: the evolving business rates system and its far-reaching implications.
From sweeping government reforms to post-COVID market recovery and AI-driven innovation the panel explore what’s changing, and what that means for occupiers, investors and advisers alike.
Here are the key takeaways from the session.
The 2026 Rating List is Already Taking Shape
We’re currently over two years into the 2023 rating list, but all eyes are on what comes next. The 2026 rating list, which takes full effect in April 2026, is based on valuations as of April 2024 – meaning your future liability is already being shaped by today’s market conditions.
With many sectors now recovering or even exceeding pre-COVID trading levels (particularly in hospitality and leisure), rateable values are expected to rise, and so are business rate bills.
Now is the time to review your rateable values, assess exposure, and identify whether an appeal could reduce future liability.
Relief is Shrinking and Complexity is Growing
The Labour Government has introduced some of the most significant business rate reforms in years. The most impactful include:
- Retail, Hospitality & Leisure (RHL) relief slashed from 75% to 40%, with full removal planned by April 2026.
- A new five-multiplier system replacing the current two-tier setup.
- The removal of charitable relief for private schools.
These changes create a more “progressive” system in the eyes of the government, but for many businesses, they also bring uncertainty, larger liabilities, and an urgent need to reassess rates strategies.
As panellist Richard Scott noted “RHL relief has been a lifeline since COVID. Without it, many high street businesses will face real pressure.”
Technology is Transforming the System, But Slowly
AI and automation are increasingly being explored as ways to modernise business rates assessment and appeals. However, the panel agreed that the system is not yet “digital by default.” The current rating process remains complex and heavily reliant on accurate data and proactive engagement.
As Dunlop Heywood Director Adam Brooke shared, “Technology is advancing, but it’s not yet eliminating complexity. For now, knowledge is power.”
While long-term change is coming, businesses must still navigate today’s system manually and strategically.
‘Duty to Notify’ Will Change Accountability
One of the most overlooked reforms is the proposed introduction of a ‘duty to notify’, which will require ratepayers to inform the Valuation Office Agency (VOA) of changes to their property that could affect their rateable value.
This shifts the responsibility from the assessor to the occupier, and non-compliance could result in penalties.
This means more admin, more risk and more need for expert oversight to ensure nothing is missed.
There Are Still Opportunities, But Time is Running Out
The panel concluded with a clear message: while the system is getting more complex, it’s also full of opportunities for businesses who act early.
From appeals and audits to relief reviews and strategic portfolio planning, there are numerous ways to manage and potentially reduce your liability. But the deadline to appeal your current rateable value is 31 March 2026, and missing it could mean missing out on three years of potential savings.
As Dunlop Heywood Director Aaron McLeod put it, “The most important opportunity is the opportunity to challenges your rates.”
Conclusion
The UK business rates system is undergoing the biggest transformation in a generation. For occupiers, landlords and operators across all sectors, the next 12-24 months will be critical.
At Dunlop Heywood, we’re helping clients navigate this complexity, spot risks and uncover savings before they’re lost in reform.
