Business Rates - transitional arrangements for 2026 onwards

The aim of transitional arrangements is to offset large variations between rates payable in the first year of a new Valuation List when compared to rates payable in the final year of the previous List. These Government measures limit the potential increases in liability so that their effect would be phased in over several years during the life of the current Valuation List.

The transition scheme will operate over a period of 3 years, the life of the Rating List, from 1 April 2026 to 31 March 2029.

The scheme has split properties into 3 groups and the rates where increases apply will differ between each group of property.

The properties are categorised as follows: 

  • Small Property – Rateable Value up to £20,000
  • Medium Property – Rateable Value from £20,001 to £100,000
  • Large Property – Rateable Value from £100,001 upwards

The annual limits on increases in bills over the three year life of the 2026 rating list are as follows:

Maximum increases in real terms - per cent

Year Small Property Medium Property Large Property
2026/2027             5%             15% + Inflation             30% + Inflation
2027/2028             10%             25% + Inflation             25% + Inflation
2028/2029             25%             40% + Inflation             25% + Inflation

 

Therefore, should your bill increase greater than the % stated above against the previous financial year, the transitional arrangements will automatically be put in place to ensure your bill will not increase more than the % specified in comparison to the previous year’s bill.

It should be generally noted that an entitlement (if any) to transitional provisions is property based and granted automatically. The actual amount granted is calculated using a formula set by legislation. If you require further information on how these provisions affect the rate liability of individual properties, please contact Customer Services or email nndr@spelthorne.gov.uk

However, please note that in view of the above provisions there could be little or no change to the amount of rates payable if a successful appeal to the Valuation office Agency results in a reduction to the rateable value. This is because adjustments are made firstly to the amount of transition granted and this could wholly or partly offset any reduction achieved.

Last modified: 09/01/2026