Business Rates Appeal: 57% of Challengers Secure a Reduction

A business rates appeal stands a better-than-even chance of success, according to statistics published by the Valuation Office Agency (VOA) at the end of May, with almost 130,000 new cases filed in a single quarter threatening to create a material backlog.

The data shows that 57% of firms challenging their business rates bills eventually secured a reduction. Almost 130,000 business owners began the process during the first three months of 2026, five times more than in the fourth quarter of 2025. That volume will almost certainly lengthen processing times for any business rates appeal filed this year.

The 2026 Revaluation: What Changed on 1 April

New assessments came into force on 1 April 2026. According to rradar, there were 2.13 million properties on the 2026 draft list in England and Wales as of 16 November 2025. Rateable values are revalued every three years by the VOA; this round follows the 2023 revaluation and resets the baseline for bills across the country. The rateable value itself is the VOA’s estimate of the commercial rent potentially chargeable on each property; if that estimate is wrong, the bill will be wrong too.

Local councils calculate those bills by multiplying each property’s rateable value by a multiplier set by the UK and Welsh governments, as set out on GOV.UK’s business rates revaluation page. Ratepayers can also use their VOA account to compare their property’s rateable value with similar properties nearby and check how the valuation was calculated.

The retail sector faces a sharper adjustment than most. Analysis by Ryan shows that overall retail rateable values under the 2026 revaluation increased by 9.3% across England and Wales. Ryan’s comparison of the 2023 and 2026 draft local rating lists also identified a net loss of 4,410 retail premises since November 2022, equating to more than 28 high street retail premises a week disappearing from towns and cities over the three-year period.

The deadline for appealing 2023 rateable values passed on 31 March 2026. That cutoff accounts for much of the first-quarter filing surge. The 2026 list is now open to challenge.

How the Business Rates Appeal Process Works

The process runs in three stages. A Check simply asks the VOA to confirm the factual details it holds about your property. If inaccurate data is in the system (a wrong floor area, an incorrect use classification), a Check alone may be enough to correct it. Relatively few Checks produce a reduction; most businesses then move to stage two.

Following a Check, you have four months to submit a Challenge. Since that window opens only after the Check is complete, any delay in filing the Check directly compresses your time to build a case. The Challenge is where evidence matters: the open-market rent on your property, comparable leases on nearby premises, or evidence of a material change in use or in the surrounding area. You do not need to show the VOA is dramatically wrong; even a modest overestimate of rental value translates directly into a lower annual bill.

Cases that do not succeed at Challenge can be appealed at the independent Valuation Tribunal Service. In Wales, the Valuation Tribunal for Wales handles appeals; for property valuations made on or after 1 April 2023, ratepayers must submit an appeal form directly to the tribunal. Filing an Appeal carries a fee of up to £300 and must be submitted within four months of receiving the Challenge decision. The fee is refunded if you win.

Appointing an Agent, and the Risk of a Higher Bill

Businesses can handle each stage themselves. Many appoint a professional agent, particularly for the Appeal stage, using their experience to navigate the process efficiently. The Royal Institution of Chartered Surveyors can direct you to firms meeting its professional standards. South Gloucestershire Council’s guidance on challenging rateable values also sets out the basic steps for those who prefer to manage the process without an agent.

One risk deserves a direct statement: a business rates appeal can result in a higher bill, not a lower one. It is relatively uncommon, but the VOA can revise its estimate upward if your evidence suggests the current valuation is too low. Review your evidence carefully before proceeding.

Given the 130,000 filings already in the queue, starting the Check stage promptly is the most straightforward way to avoid the backlog compounding.