Nearly half of business rates appeals are taking over a year to resolve, up from 18% this time last year amid a surge in appeals, Property Week can reveal.
Data obtained from the Valuation Office Agency (VOA) via a Freedom of Information (FOI) request by law firm BCLP showed 45% of appeals took 12 months or more to resolve in Q4 2025.
The figures also showed that the VOA cleared 2,135 cases that took more than a year to process in Q4, compared with 545 in the same quarter the previous year.
BCLP said the surge in cases, and the scale of the increase in cases taking more than 12 months, point to a system “under significant pressure”.
Source: BCLP
The VOA’s figures show half of challenges under the 2023 list resulted in an agreed adjustment.
BCLP partner Elizabeth Bradley said: “It is becoming the norm for business rates appeals to take more than a year to resolve. For ratepayers, that means a much longer period of uncertainty.
“The system is clearly under strain and although around half of challenges do result in an agreed adjustment, the length of the process means many businesses are left without clarity for an extended period.”
She added: “Prolonged uncertainty around their rates liability is now influencing investment decisions.”
The hike in appeals comes ahead of new rateable values (RVs) coming into effect on 1 April – also the deadline for appeals under the 2023 list – and BCLP said recent rates reforms, including new multipliers, are likely to generate a further increase in disputes. From 1 April, businesses will then be able to appeal their new RVs.
The draft RVs, released by the VOA after the November Budget, show total RV across all 2.13 million rated properties is set to rise 19.2% from the 2023 list to £84.4bn.
Bradley added: “Every new rating list generates a surge of early challenges and the 2026 list will be no exception. The concern is that this surge will hit a system already under pressure.
“The VOA is still clearing appeals from the 2017 list while simultaneously dealing with a growing backlog from the 2023 list. With the 2026 list about to open, the system risks carrying two generations of unresolved disputes at once.”
Rachel Kelly, associate policy director at the British Property Federation, said: “The surge in the number of business rates appeals taking more than 12 months to resolve is concerning as uncertainty for business ultimately impacts investment and hampers growth.
“April’s new tax rates for different asset classes is likely to make the situation worse as it will introduce many more ‘cliff edge’ points, where a small change in valuation could make a big difference in the tax bill.
“We urgently need greater transparency in the system so rate-payers better understand the basis of their valuation before an appeal is made. Government must also look at ways to simplify what is an overly-complex system for businesses to navigate.”
A VOA spokesperson said the agency was “meeting all our statutory deadlines for both Check and Challenge and prioritise customers who tell us they are facing hardship”.
They added: “Challenges are typically more complex and usually involve a series of discussions and exchange of evidence. We know the speed of our service matters to businesses and ratepayers and we are doing everything we can to clear cases as quickly as possible.”
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