Business rates ‘carnage’ predicted as appeals soar

A fivefold increase in business rates appeals has been seen in the last quarter, with experts predicting “carnage” as the valuation office struggles to keep up with checks.  

Colliers has reported a “tsunami” of appeals, rising from 26,170 between October and December 2025 to 129,810 between 1 January and 31 March 2026.

The commercial real estate agent has said the figures reveal a system that is “not fit for purpose” and “unable to cope”.

Since the publication of the 2023 non-domestic rating list, 341,020 checks have been registered with 253,050 resolved and 87,970 remaining.

Registering a check is the first stage of the business rates appeal process, after which applicants can progress to challenge and appeal.

Since the publication of the 2023 list 59,470 challenges have been registered, of which 22,380 have been resolved while 10,510 remain incomplete and 26,580 are outstanding.  

John Webber, head of business rates at Colliers, said he does not believe the Valuation Office will be able to cope with the escalating number of appeals.

He said: “Looking at the checks first. To work through five times the number as normal will take the Valuation Office at least two years looking at their previous rate of processing. And in terms of the challenges, given the Valuation Office has only resolved 38% of those submitted in the whole three years of the list, how long is it going to take to resolve the remaining 45%?”

Webber said the delays in registering checks were a result of an overly complex registering system and the high level of information applicants are required to provide.

He predicts the system will get worse when checks and challenges against the 2026 rating list begin to be lodged.

He added: “[It will] undoubtedly will produce the same if not larger numbers. We have already seen how certain sectors such as retail and hospitality and hotels are clamouring against their new assessments!

“It’s going to be carnage and ratepayers unhappy with their business rates bills will be the ones to suffer.”

Of those who have challenged their business rates valuation, 58% have seen a reduced rateable value. Of those who went on to the appeal stage 54% saw a reduction.

Webber said changes were needed to simplify the process of appeal. He added: “We must find a better system and a new way of dealing with appeals – and we need to do it now.”

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