Business rates bills are determined in part by the property’s rateable value (RV), being its estimated annual open-market rental value at a set date. Properties are revalued periodically to reflect changes in the economy and other factors.

The most recent revaluations came into effect in England and Wales on: 

• 1 April 2026 (2026 revaluation), based on values at 1 April 2024; and 
• 1 April 2023 (2023 revaluation), based on values at 1 April 2021.  

The next revaluation is scheduled for April 2029 (2029 revaluation). 

The 2026 revaluation 

RVs increased significantly between April 2021 and April 2024 as the economy recovered from the impact of the COVID-19 pandemic. This resulted in significant increases in business rates bills with effect from April 2026. This was particularly pronounced for hospitality businesses due to the effects of COVID-19 restrictions.

The government has taken action to reduce the impact of the rise in bills on businesses, which included the announcement of a 20% cut in business rates bills for pubs, social clubs and live music venues from April 2027.  

Independent review 

The government has now launched an independent review of the business rates valuation methodology for pubs and hotels with the intention of working with businesses to “ensure the system is fair and transparent” and that “pubs and hotels can plan better for the future”.  

The review is expected to conclude by the end of March 2027, in time for any recommendations to be implemented for the 2029 revaluation. The 2026 revaluation will not be affected by the outcome of the review.  

As business rates are devolved across the United Kingdom, the review will consider valuation methods used in England and Wales only. The Scottish Government is running a separate independent review of valuation of the licensed hospitality sector in Scotland. 

Call for evidence 

The review began on 24 August 2026 with the publication of a call for evidence, seeking to “gather robust, practical evidence” on: 

• whether the existing valuation methodologies for pubs and hotels remain appropriate;
• how they are applied in practice; and 
• how they might be improved.  

Of particular interest to the government is: 

• how rents are determined in the market; 
• how trading performance is reflected in rents; and 
• where current approaches to valuations for business rates may not align with market reality.

Budget 2026 

The government is expected to provide an update on its wider work to reform business rates at the Budget, on 28 October 2026. An earlier article provides further information.