As draft data for the 2026 Rating List continues to be reviewed, pubs and the wider hospitality sector remain a focal point across the Business Rates system. While changes to multipliers and reliefs are intended to support Retail, Hospitality and Leisure properties, draft list data shows that valuation movements play a significant role in how these measures translate into liabilities in practice.
For Local Authorities, understanding how valuation change, multiplier adjustments and relief eligibility interact is an important part of preparing for the year ahead.
Hospitality sees the largest valuation uplift
Draft list analysis indicates that hospitality properties have experienced the largest overall increase in rateable value within the Retail, Hospitality and Leisure sector. This increase is notably higher than those seen across retail and leisure properties and is particularly pronounced in London.
These valuation movements form the backdrop to the introduction of new lower multipliers for eligible properties, designed to help manage Business Rates liabilities from the coming financial year.
Pubs remain a key focus within hospitality
Within the hospitality sector, pubs have attracted particular attention. While valuation increases for pubs sit below the wider hospitality average, draft data shows that rateable values have still increased substantially overall.
In practical terms, this means that for many pubs, increases in rateable value may offset the impact of reduced multipliers. Draft list analysis suggests that before the application of any reliefs, gross rates payable across pubs are expected to increase when compared with the current rating list.
This highlights how valuation change and multiplier adjustments interact, and why outcomes can vary even where properties fall within the same relief category.
Changes to Small Business Rates Relief eligibility
Draft list data also indicates a shift in eligibility for Small Business Rates Relief among pubs.
Under the 2023 Rating List, a significant proportion of pubs fell below the ÂŁ15,000 rateable value threshold. Based on the draft 2026 list, that proportion is expected to reduce, meaning a notable number of pubs may no longer meet the eligibility criteria for relief.
For Local Authorities, this has implications not only for billing outcomes but also for forecasting and the administration of reliefs, particularly where properties move above the threshold for the first time.
Administrative considerations for Local Authorities
Alongside valuation and multiplier changes, discussions are ongoing regarding further support for pubs, most likely through additional relief mechanisms. Any additional relief would sit alongside revised multipliers and existing schemes.
As these elements combine, the Business Rates system becomes increasingly complex to administer. For billing authorities this reinforces the importance of accurate valuation data, clear assessment of relief eligibility and consistent application across the rating list.
Supporting Local Authorities through data led insightÂ
Analyse Local works with Local Authorities to provide data led insight into draft list changes, valuation movements and relief eligibility. This supports authorities in understanding how national changes are reflected locally and helps inform preparation ahead of the 2026 Revaluation.
As further draft data becomes available, continued analysis will remain essential to maintaining transparency, accuracy and confidence across the Business Rates system.
If you would like to discuss draft list impacts or review how these changes may affect your authority, please contact us at info@analyselocal.co.uk.