"Businesses across England face a £1.06 billion increase in non-domestic property tax liabilities from April 2026 following today's release of September's inflation figures, according to analysis by global tax firm Ryan. The Office for National Statistics (ONS) confirmed this morning that the Consumer Prices Index (CPI) stood at 3.8% in September 2025. Each September CPI figure sets the increase to the overall business rates yield for the following financial year - even in a revaluation year."
"From April 2026, a nationwide revaluation will reset Rateable Values to reflect the property market at 1 April 2024. Revaluations are designed to be revenue-neutral nationally, redistributing the tax burden between sectors and regions depending on changes in rental values - but inflation still drives up the overall yield."
""September's inflation figure locks in a £1.06 billion increase in the business rates yield in England for next year. The UK already has the highest property taxes in the developed world - 3.7 % of GDP compared to just 1.4 % across the EU. "For large occupiers this is a double hit: inflation increasing the yield and a new 10p supplement on large properties. That combination risks undermining competitiveness at a critical moment for the economy.""
The Office for National Statistics confirmed CPI at 3.8% in September 2025. Each September CPI determines the increase to the business rates yield for the following financial year, including in revaluation years. From April 2026 a nationwide revaluation will reset Rateable Values to reflect the property market at 1 April 2024. Revaluations are intended to be revenue-neutral nationally, but inflation increases the overall yield. Calculations indicate a £1.06 billion rise in non-domestic property tax liabilities across England from April 2026. Large occupiers face an additional 10p supplement, which risks undermining competitiveness.
Read at London Business News | Londonlovesbusiness.com
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