Business Rates 2026: What Small Firms in Nottingham and Birmingham Should Review Now
If your business occupies commercial premises in Nottingham or Birmingham, your business rates bill may have changed from 1 April 2026. The new rating list, multipliers and relief arrangements mean that comparing this year’s bill with 2025/26 is worthwhile, even where the property itself has not changed.
What changed on 1 April 2026
The 2026 revaluation replaced the 2023 rating list. New rateable values are based on estimated open-market rental values at 1 April 2024 and apply until 31 March 2029.
England also moved from 2 national multipliers to 5 for 2026/27:
| Multiplier type | Rateable value | Rate |
|---|---|---|
| Small business retail, hospitality and leisure | Below £51,000 | 38.2p |
| Small business, other properties | Below £51,000 | 43.2p |
| Standard retail, hospitality and leisure | £51,000 to £499,999 | 43.0p |
| Standard, other properties | £51,000 to £499,999 | 48.0p |
| High-value, all property types | £500,000 or more | 50.8p |
The lower retail, hospitality and leisure multipliers apply only to qualifying properties. A shop, café, restaurant, gym or hotel may qualify, but businesses should check the classification on their bill or contact the council.
The final compiled list shows that total rateable value rose by 19.4% across England and Wales and by 19.6% in England. The East Midlands recorded England’s smallest regional increase at 16.4%. These aggregate figures do not predict the change for an individual property.
Reliefs and supplements to check
Small Business Rate Relief remains available where a business generally occupies one property with a rateable value below £15,000. Qualifying properties valued at £12,000 or less receive 100% relief, while relief tapers between £12,001 and £15,000.
Need Expert Accounting Advice?
If you are unsure about tax, bookkeeping, payroll, property accounts or business finances, speak to the team at FHP Accounting for clear, practical guidance.
If a business took on a second property on or after 27 November 2025, it can retain relief on its main property for 36 months, rather than 12 months. Eligibility after that period depends on the values of the other properties and their combined rateable value.
Transitional relief is applied automatically where a bill rises beyond the permitted caps because of revaluation. For 2026/27, increases are generally capped at 5% for properties with rateable values up to £20,000, 15% between £20,001 and £100,000, and 30% above £100,000. Other reliefs and adjustments can affect the final bill.
A 1p transitional relief supplement applies in 2026/27 to ratepayers who receive neither transitional relief nor Supporting Small Business Relief. Supporting Small Business Relief can limit increases for eligible businesses losing specified reliefs to £800 a year or the relevant transitional cap, whichever is greater.
What Nottingham and Birmingham businesses should do
Check the rateable value, property description and floor-area information held by the Valuation Office Agency. Compare the gross charge with the correct multiplier, then confirm that all reliefs have been applied.
The 2023 rating list closed on 31 March 2026. Businesses can no longer begin a new check against that list, although cases submitted before the deadline can continue. Challenges to the current valuation must relate to the 2026 list and follow the VOA’s Check, Challenge, Appeal process.
Build any phased increase into cash-flow forecasts. Businesses using outsourced finance and accounting support can include rates reviews in regular budgeting rather than waiting for the next annual bill.
Property owners should review lease terms before passing business rates or service-charge costs to occupiers. Accurate residential property management accounts and commercial property accounting services help separate recoverable costs from expenses that remain with the owner.
A property tax accountant can review how rates fit alongside wider property liabilities. Useful resources include tax planning for property investors, the landlord growth playbook and service charge budgeting and forecasting.
Frequently asked questions
Will a higher rateable value produce the same percentage increase in my bill?
Not necessarily. The multiplier, transitional relief, Supporting Small Business Relief and other adjustments can materially change the amount payable.
Do I need to apply for transitional relief?
No. Councils apply it automatically when the property qualifies. Contact the council if the expected adjustment is missing.
Can I still challenge my old 2023 valuation?
You cannot start a new check against the closed 2023 list. Checks and challenges submitted before 1 April 2026 may continue through the relevant process.
Get your numbers reviewed properly
FHP Accounting is an accountancy firm in Nottingham supporting businesses across the East Midlands and beyond. Get in touch with our team or book a free consultation to incorporate business rates changes into your financial planning.
I lead FHP Accounting, an accountancy practice specialising in Commercial and Residential Property Accounting. Our goal is to make the administration of running property portfolios easier for landlords, managers, and investors — allowing you to focus on what you do best, while we take care of everything behind the scenes.
Need Expert Accounting Advice?
If you are unsure about tax, bookkeeping, payroll, property accounts or business finances, speak to the team at FHP Accounting for clear, practical guidance.
