According to analysis from global tax firm Ryan, the increase, equivalent to a 10.1% rise, comes as the new three yearly revaluation cycle takes effect across England, Scotland and Wales from today (1 April), resetting liabilities for around 2.39m commercial properties.
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Ryan practice leader for Europe & Asia Pacific property tax Alex Probyn said the uptick had been driven by inflation, policy changes and the withdrawal of relief rather than the revaluation itself, which was designed to be revenue neutral.
Ongoing concern
The removal of the retail, hospitality and leisure relief, previously worth around £1.4bn in England, has not been extended into 2026/27. It has instead been replaced by lower multipliers, funded in part through a new 2.8p surtax on higher value properties.
The changes come amid ongoing concern about the impact on pubs, with previous analysis showing the majority of venues will face higher bills from this month.
Last year, research by Oxford Partnership found 87.6% of hospitality venues would see an increase in their rateable value, with modelling suggesting the average pub bill could rise by as much as 78%.
While the Government has since announced a package of support for pubs, including a 15% discount for eligible venues and an ongoing review of valuation methodology, industry bodies have warned cost pressures remain significant.
The revaluation is expected to have a particularly pronounced impact on hospitality and leisure businesses, where valuations are closely tied to trading performance, often valued using the receipts and expenditure method.
This links rateable value more directly to trading performance, meaning the recovery from pandemic suppressed turnover has driven sharp increases in valuations.
Higher bills
“Even with transitional caps in place, those increases will still compound and bills can more than double by the end of the cycle,” Probyn warned.
Beyond hospitality, upward pressure is also expected in prime office and logistics markets, reflecting strong rental demand in key locations.
The latest reset further highlighted growing divergence across the UK, with Northern Ireland pausing its planned revaluation following pressure from the hospitality sector.
Probyn added: “Pausing revaluation in Northern Ireland reflects a political choice about how to respond to post pandemic increases in valuations, highlighting the divergence in policy across the devolved nations.”
