As featured in Drapers, Andrea Barnes, Head of Business Rates at Form Property, shares insight into the upcoming 2026 revaluation and what it means for fashion retailers navigating rising costs and an evolving high street landscape.

As April 2026 approaches, fashion retailers are once again preparing for a business rates reset. This revaluation, based on April 2024 rental values, reflects a markedly different market compared with the previous list, which relied on April 2021 figures during the pandemic.

In 2021, retail rents were subdued. Landlords offered concessions; vacancy levels were high; the market was fragile. This translated into lower rateable values when the 2023 list came into force.

By April 2024, however, the picture had shifted. Prime retail pitches, particularly in London and major regional centres, had stabilised. While headline rents remained broadly flat, incentives tightened and demand for top-tier space returned. As a result, many fashion retailers in strong locations are now likely to face rateable value increases this year, some of them significant.

A double impact: rising values and reduced relief

The revaluation does not exist in isolation. The termination of the 40% business rates relief available for retail, hospitality and leisure, now replaced by new multipliers, compounds the challenge.

This, combined with rising RVs, means that many retailers will receive higher bills, some considerably higher, than under previous measures.

Support remains in place for pubs and live music venues, with 15% relief from 1 April. However, no equivalent commitments have been made for retail.

The Government has shown that targeted support is possible. Many would argue similar measures for shops are necessary to protect high streets.

The online imbalance debate continues

There has also been continued discussion around the property-based tax burden that brick-and-mortar retailers carry, and the extent to which this is avoided by online-only businesses.

Recent consultations explored the introduction of an online sales tax to “level the playing field,” but these proposals have been dropped as too complex to manage.

“Without further intervention, the potential consequences are clear,” Andrea warns. “Major store-led brands may accelerate online strategies to mitigate high property costs, a shift that could prove the ‘final nail in the coffin’ for many already struggling high street retailers.”

A widening divide across the high street

Performance in fashion retail remains polarised. Prime destinations and experiential flagships have shown resilience, with retailers focusing on fewer stores with stronger brand identities and greater omnichannel integration.

“Retailers are consciously designing physical spaces to reinforce their identities with shoppers,” Andrea explains. “It is about experience as much as transaction.”

At the same time, secondary and tertiary high streets continue to struggle with vacancies and lower footfall.

“The shift in valuation date from 2021 to 2024 may widen this divergence,” Andrea says. “Stronger schemes could see RV growth, while weaker locations experience smaller changes.”

For retailers that survived the pandemic downturn but have not fully rebuilt margins, even moderate increases could have serious consequences.

“For some, it may tip stores from survival mode into being wholly unviable,” she adds.

How retailers can respond

Form has supported many retail businesses in recent years, advising on how best to optimise the level of business rates they pay. From this experience, several key actions stand out:

• Review draft RVs early
  Scrutinise assumptions on rent, zoning, floor areas and comparables. Early corrections are far more effective than post-implementation challenges.
• Model liabilities carefully
  Forecast 2026 to 2027 rates under different multiplier scenarios and do not assume relief extensions. Profitability assessments need to reflect the post-2026 reality.
• Reassess portfolios strategically
  Frequent revaluations mean rates exposure should inform lease planning and wider portfolio decisions.
• Approach appeals tactically
  Use the Check, Challenge, Appeal process strategically and always with robust evidence.

A system under pressure

The broader question remains whether a tax system so heavily weighted toward physical occupation is fit for modern retail.

“Fashion relies on something inherently physical,” Andrea says. “The environment, the customer experience, the sense of theatre and brand immersion are essential.”

Yet it is precisely this physical presence that attracts a disproportionate tax burden.

With pub relief set to start on 1 April 2026, the Government has already demonstrated that targeted intervention is possible,” she notes. “But uncertainty remains.

What comes next

Without meaningful reform, the forthcoming revaluation risks reinforcing structural imbalances rather than correcting them.

“The sector has shown real resilience and adaptability,” Andrea concludes. “What it needs now is a rating framework that supports, rather than penalises, investment in physical retail.”

Rather than being just another administrative adjustment, this revaluation could fundamentally shape the next phase of store strategy across the UK.

“Handled properly, it could be a positive turning point,” Andrea adds. “Let’s hope the opportunity is not missed.”

Contact Andrea to start a conversation.