What Solihull Businesses Need to Know About The 2026 Business Rates Reevaluation

What Solihull Businesses Need to Know About The 2026 Business Rates Reevaluation

Key Points

* From 1st April 2026, the Valuation Office Agency's triennial revaluation resets rateable values across England and Wales to reflect the open market rental position as at 1st April 2024, under powers derived from the Local Government Finance Act 1988 and the Non-Domestic Rating Act 2023.

* The existing two-multiplier system is replaced by five new multipliers, permanently embedding lower rates for qualifying retail, hospitality and leisure (RHL) properties and introducing a higher "large property" surcharge for hereditaments with rateable values of £500,000 or above.

* Transitional relief, worth £3.2 billion nationally, caps annual bill increases for three years from 1st April 2026, but allows substantial increases to phase in, particularly for medium- and large-sized properties.

* Businesses that believe their new rateable value is wrong may challenge it through the Check, Challenge, Appeal process via the Valuation Office Agency (see gov.uk guidance); professional advice is strongly recommended before commencing a challenge.

* Owner-managed businesses and commercial landlords in Solihull and the wider West Midlands should review the practical interaction of these changes with lease terms, business succession planning, and any pending property transactions.

The 2026 Revaluation in Context

Business rates remain one of the most significant occupancy costs for commercial property users in England. The revaluation that comes into force on 1st April 2026 is the first under the new three-yearly cycle mandated by the Non-Domestic Rating Act 2023, which accelerated the previous five-year timetable with the explicit aim of keeping rateable values more closely aligned with actual market conditions.

The Valuation Office Agency (VOA) has reassessed the rateable values of more than two million commercial properties in England and Wales. The new values reflect open-market rental conditions as they stood on 1st April 2024, replacing assessments based on the 1st April 2021 antecedent valuation date. For businesses in Solihull and across the West Midlands, where the commercial property market saw considerable activity in the intervening period, the practical effect on individual bills varies widely by sector and location.

Solihull Metropolitan Borough Council has published its own guidance on the changes, and businesses that have not yet reviewed their new 2026/27 demand notice should do so promptly. Bills issued in March 2026 reflect both the revalued rateable figure and the applicable multiplier under the reformed system.

The New Multiplier Framework

The most structurally significant change within this revaluation cycle is the replacement of the existing two multipliers with five separate rates, introduced by statutory instruments under the Local Government Finance Act 1988.

Category: Small Business RHL
Rateable Value: Below £51,000
Multiplier: 38.2p

Category: Small Business (Non-RHL)
Rateable Value: Below £51,000
Multiplier: 43.2p

Category: Standard RHL
Rateable Value: £51,000 to £499,999
Multiplier: 43.0p

Category: Standard (Non-RHL)
Rateable Value: £51,000 to £499,999
Multiplier: 48.0p

Category: Large (All Properties)
Rateable Value: £500,000 and above
Multiplier: 50.8p

The lower RHL multipliers replace the previous temporary relief scheme, which is abolished from 31st March 2026. This is material for Solihull town centre occupiers, particularly those affected by the Mell Square redevelopment currently underway. A qualifying café with a rateable value of £40,000 will pay 38.2p in the pound rather than the standard 43.2p, producing a meaningful annual saving.

Industrial, logistics, and manufacturing occupiers, well represented along the M42 corridor and in the Coventry and Warwickshire supply chains, receive no equivalent sector protection. Those businesses will pay the standard non-RHL multiplier or, where their rateable value reaches £500,000, the large property surcharge of 50.8p. The manufacturing sector has been vocal in arguing that this creates a structural imbalance in the reformed system.

Transitional Relief

To moderate the shock of revaluation, the government has introduced a redesigned transitional relief scheme worth £3.2 billion over three years, running from 1st April 2026 to 31st March 2029. The relief caps upward movement in bills as follows:

* Properties with a rateable value up to £20,000: increases capped at 5% in 2026/27, rising to 10% plus inflation in 2027/28 and 25% plus inflation in 2028/29.

* Properties with a rateable value of £20,001 to £100,000: increases capped at 15% in 2026/27, 25% plus inflation in 2027/28, and 40% plus inflation in 2028/29.

* Properties with a rateable value above £100,000: increases capped at 30% in 2026/27, then 25% plus inflation in each of the following two years.

Transitional relief is applied automatically and appears on the rates demand. Businesses do not need to apply separately, though it is worth verifying the calculation against the published cap figures.

A Supporting Small Business Scheme also operates alongside the relief, capping annual bill increases for businesses losing small business rate relief or RHL relief at the higher of £800 or the applicable transitional relief cap. This provides a meaningful floor for the smallest occupiers.

The Check, Challenge, Appeal Process

Where a business believes its new rateable value is incorrect, the Non-Domestic Rating Act 2023 preserves the Check, Challenge, Appeal (CCA) process, administered online through the VOA. The three stages are distinct and must be followed in sequence.

1) Check: The ratepayer registers a business rates valuation account, adds the relevant property, and submits a check case to verify or correct the factual information underpinning the VOA's assessment. This is not an appeal; it is a data verification exercise.

2) Challenge: Following receipt of the check decision, the ratepayer may submit a challenge setting out the proposed revised rateable value, supported by evidence including comparable rental transactions, plans, photographs, and a formal statement of case. The VOA must respond within 18 months.

3) Appeal: If the challenge is rejected or no decision is issued within 18 months, the matter may be referred to the Valuation Tribunal for England, an independent statutory body. Appeal fees are £150 for smaller proposers and £300 for larger ones, refundable on success. Full guidance is available at gov.uk/guidance/challenge-the-valuation.

Importantly, the Non-Domestic Rating Act 2023 tightened the scope of what counts as a Material Change of Circumstances (MCC) between revaluations. Following the precedent set during the COVID-19 pandemic, new legislation, licensing regimes, and guidance from public bodies will no longer constitute grounds for a mid-cycle challenge. This limits the circumstances in which a ratepayer can argue for a reduction outside the formal revaluation timetable, making the accuracy of the initial assessment more critical.

Businesses considering a challenge should take professional advice early. The evidence threshold at the challenge stage is high, and the CCA process requires submission of all supporting material at once.

Practical Steps for Solihull Businesses

The revaluation is in force. There are several concrete actions worth taking now.

* Check the new rateable value: The VOA publishes all rateable values at Find a business rates valuation . Compare this against the rental evidence for your property and equivalent units in the area.

* Verify the multiplier: Confirm that the correct multiplier has been applied to your bill. Retail, hospitality and leisure occupiers should receive one of the two RHL multipliers; if your billing authority has applied the wrong category, this should be corrected immediately.

* Consider the lease interaction: For tenants whose leases contain rent review clauses linked to rateable value, less common but not unknown, the revaluation may have indirect consequences for rent. Commercial landlords should review any such provisions in their portfolio.

* Review reliefs: Small Business Rate Relief, rural rate relief, and the Supporting Small Business Scheme may all affect the net liability. The eligibility criteria have changed with the revaluation, so a fresh assessment is worthwhile.

* Seek advice on challenges promptly: Although there is no hard deadline to commence a check case in respect of the 2026 list, acting early produces better outcomes given the evidence-gathering requirements.

Looking Ahead

The move to three-yearly revaluations reflects a long-term government intention to keep the business rates system more responsive to market conditions, with annual revaluations a possibility in future cycles under the Non-Domestic Rating Act 2023. The accompanying duty on ratepayers to notify the VOA proactively of changes to their property, a new obligation introduced under that Act, has yet to fully bed in, and guidance on the precise scope of the reporting duty is still developing.

For the West Midlands, the structural question is whether the RHL multiplier reduction will deliver its intended effect of supporting town centre occupiers, at a time when Solihull's town centre is undergoing substantial physical transformation. In my experience and having talked with many clients, early indications from retail and hospitality agents are cautiously positive. Still, the test will come as the new Mell Square development brings fresh stock to the market and occupier demand is put to the test.

The business rates system remains one of the more complex areas of commercial property law in England, and the 2026 reforms add further layers. Taking professional advice from both a rates specialist and a Commercial Property Solicitor remains the most effective way to manage exposure and identify savings.

Frequently Asked Questions

When did the 2026 revaluation take effect?

The new rateable values came into force on 1st April 2026. They are based on open-market rental values as at the antecedent valuation date of 1st April 2024. They will remain in place until the next revaluation in 2029, under the three-yearly cycle introduced by the Non-Domestic Rating Act 2023.

Do I qualify for the lower retail, hospitality and leisure multiplier?

Yes, if your property is used for qualifying retail, hospitality or leisure purposes and your rateable value is below £500,000, you should receive either the small business RHL multiplier (38.2p) or the standard RHL multiplier (43.0p), depending on whether your rateable value is below or above £51,000. Your billing authority will normally have allocated the multiplier based on the information it holds; if you believe this is wrong, contact the authority directly as a first step.

Can I challenge my new rateable value if I think it is too high?

Yes, through the Check, Challenge, Appeal process administered by the Valuation Office Agency. You must complete the Check stage first, then submit a Challenge with supporting evidence if you wish to propose a revised value. If the VOA does not resolve the matter to your satisfaction, an appeal to the Valuation Tribunal for England is available. The process is described at gov.uk/guidance/challenge-the-valuation.

What is transitional relief and is it applied automatically?

Transitional relief caps how much your business rates bill can increase each year during the 2026 to 2029 rating period. The caps depend on your rateable value: 5%, 15%, or 30% in 2026/27 for small, medium, and large properties, respectively. Relief is calculated and applied automatically by your billing authority and should appear on your rates demand; you do not need to make a separate application.

My business is in manufacturing or logistics, not retail. How does the new system affect me?

If your property does not qualify as retail, hospitality or leisure, you will pay the standard non-RHL multiplier (43.2p for rateable values below £51,000 or 48.0p for values between £51,000 and £499,999). Properties with rateable values of £500,000 and above attract the new large property surcharge of 50.8p across all sectors. There is no sector-specific relief equivalent to the RHL multipliers for industrial or logistics occupiers, which is a point of ongoing criticism from representative bodies in the manufacturing sector.