As we look ahead to the 2026/27 financial year, businesses are facing the most significant overhaul of the business rates system in recent years. With a new revaluation coming into effect on 1 April 2026, here is what Dorking town centre businesses need to know to prepare.
Please note we have tried to be as accurate as possible in compiling this information, but you should check your own circumstances with the council or VOA. Information may change and this article was updated in March 2026. Errors and Omissions Excepted.
1. The 2026 Revaluation: A New Baseline
Every three years, the Valuation Office Agency (VOA) reassesses the “rateable value” (RV) of all commercial properties to reflect the current rental market.
- The Valuation Date: For the 2026 list, the VOA is using property values as of 1 April 2024.
- Why it matters: Your business rates bill is calculated by multiplying your RV by a “multiplier” set by the government. If your area of the high street has seen rental shifts since the last valuation, your bill will likely change.
2. The Move to Permanent Multipliers for the High Street
For years, retail, hospitality, and leisure (RHL) businesses have relied on temporary, year-on-year relief schemes (such as the current 40% RHL relief). From April 2026, the government is replacing these reliefs with permanent multipliers for RHL properties with an RV under £500,000.
From 1 April 2026, the new multipliers are expected to be:
- Small business multiplier: 43.2p for properties with a rateable value under £51,000
- Standard multiplier: 48.0p for properties with a rateable value of £51,000 or more
- RHL small business multiplier: 38.2p for eligible businesses with a rateable value under £51,000
- RHL standard multiplier: 43.0p for eligible businesses with a rateable value of £51,000 or above
- High value multiplier: 50.8p for properties with a rateable value of £500,000 or more
Small Business Rate Relief
You can get small business rate relief if:
Your property’s rateable value is less than £15,000.
Your business only uses one property – you may still be able to get relief if you use more.
You can find out more about Small Business Rate Relief here.
Transitional Relief
From 1 April 2026 a redesigned Transitional Relief scheme has been introduced for the 2026 rating list. The scheme incorporates all five multipliers.
If your bill increases from 1 April 2026 as a result of revaluation, the increase will be limited to a certain percentage. The amount of this percentage will depend on your rateable value. Your council will adjust your bill automatically if you’re eligible. You can read more about transitional relief here – Business rates relief: Transitional relief – GOV.UK or on the Mole Valley District Council Website – Business Rates Reductions – Mole Valley District Council
Pubs and Live Music Venue Relief
On 27 January 2026, the government announced an additional 15% relief for 2026/27 for all pubs and live music venues. The 15% relief will be applied after any transitional relief or Supporting Small Businesses relief is applied to a pub’s bill.
Pubs and live music venues will then have the rise in their bill capped according to inflation in 2027/28 and 2028/29. The government’s press release defines the coverage of the terms ‘pubs and live music venues’.
For information on all types of rates relief for businesses please visit Mole Valley District Council’s website.
3. How to Dispute Your Valuation: Check, Challenge, Appeal
If you believe your new 2026 rateable value is incorrect, you must follow the VOA’s statutory three-stage process. You cannot skip stages, and you must continue to pay your rates as billed by Mole Valley District Council while the process is ongoing.
- Stage 1: Check: This stage is about the facts. You must verify the physical details the VOA holds about your property, such as floor area, number of rooms, and usage. If the measurements are wrong, you submit a “Check” case via your online Business Rates Valuation Account (Business rates valuation account: sign in or set up – GOV.UK). The VOA usually has 12 months to respond.
- Stage 2: Challenge: If the facts are correct but you believe the valuation is still too high (e.g., because of local economic changes or comparable rents in Dorking), you move to “Challenge.” You must provide a proposed alternative value and evidence, such as lease agreements or photos. This must be done within 4 months of the “Check” decision.
- Stage 3: Appeal: If you disagree with the VOA’s “Challenge” decision, you can appeal to the independent Valuation Tribunal for England (VTE). There is usually a fee for this (£150 for small businesses), which is refunded if you win. The Tribunal will only look at the evidence you provided during the Challenge stage.
5. Who to contact for more information
MVDC remains your primary point of contact for anything related to your bill, including applying for specific reliefs (like Small Business Rate Relief or Hardship Relief). You can read more about reliefs available here – Business Rates Reductions – Mole Valley District Council. However, for queries regarding the valuation itself, you must deal directly with the VOA.
6. How does this effect my BID Levy
BID levy is calculated at 2% of a businesses rateable value. If your business has a rateable value of £8000 or more you will automatically be billed via MVDC for your levy. If your rateable value has changed then the amount of BID levy you pay will also change. If your rateable value has gone above £8000 for the first time, then MVDC will set up a BID levy account automatically.
You can find more information on business rates changes here – Business rates: forward look – GOV.UK
