Confidence among small businesses is at near-record lows, and for the first time, taxation — not labour or energy costs — has become the number one worry for small firms, cited by 64% of respondents to the FSB’s Small Business Index. For many Cheltenham business owners, the sharpest edge of that worry is business rates.
What’s changing
The 2026 business rates revaluation took effect on 1 April 2026, using property values as at 1 April 2024. Rateable values are set by the Valuation Office Agency (VOA), and any increase feeds straight through to what a business pays — regardless of whether trade has improved. Retail, Hospitality and Leisure relief ended on 31 March 2026. From 1 April 2026, properties with a rateable value under £51,000 pay the small business multiplier of 43.2p, retail, hospitality and leisure properties under £51,000 pay a lower 38.2p, and standard properties pay 48p. For bills that rise sharply, England’s Supporting Small Business Relief limits the increase in 2026/27; the caps depend on the rateable value band.
Cheltenham Borough Council administers business rates relief locally. Small Business Rate Relief gives 100% relief on properties with a rateable value up to £12,000, tapering to nothing at £15,000.
What it means for you, in cash terms
For a typical high street retail unit in Cheltenham, a change in rateable value can mean a swing of hundreds to thousands of pounds a year in rates liability — money that has to come from somewhere in a period when the FSB reports 53-56% of small firms are already seeing falling revenue.
What you can do this month
- Check your new rateable value and whether you qualify for Small Business Rate Relief — apply directly through Cheltenham Borough Council if you haven’t already. Retail, Hospitality and Leisure relief has ended, so check the new multiplier that applies to your property.
- If you believe your rateable value is wrong, use the VOA’s “Check, Challenge, Appeal” process — there are deadlines, so don’t leave it to the last minute.
- Ask about Supporting Small Business Relief if your bill is rising sharply — it limits how much the bill can increase in 2026/27.
Where to get help
- Cheltenham Borough Council business rates team — search cheltenham.gov.uk for the current business rates page
- VOA Check, Challenge, Appeal — gov.uk (search “business rates appeal”)
- Cheltenham Chamber of Commerce — cheltenhamchamber.org.uk
- Cheltenham BID — cheltenhambid.co.uk
This piece is part of Cheltenham Times’ new business section, launching regular practical coverage of the cost pressures facing local firms. Are you a Cheltenham business owner willing to share how the rates revaluation is affecting you? Get in touch — we’d like to include real local voices in this series.
