The Department of Finance (DoF) has published a public consultation on two reforms to the rating system intended to support business activity and the vitality of our town and city centres, including the phased increase of Non-Domestic Vacant Rating (NDVR) to 100%.
Proposal 1: Business Growth Accelerator
The Department of Finance is consulting on a new Business Growth Accelerator that would temporarily delay rates increases after commercial property improvements.
At present, any upgrade immediately raises a building’s rateable value and liability.
Under the proposal, businesses would continue paying their pre‑improvement rates for a set grace period, likely around 12 months, before the higher valuation takes effect.
Eligible works would include extensions or enlargements, refurbishment projects, any upgrades that increase rateable value, and improvements that boost capacity or productivity. The scheme would apply solely to existing properties.
Proposal 2: Non-Domestic Vacant Rating (NDVR)
The consultation also proposes a phased rise in rates for vacant commercial property, replacing the current 50% liability.
Under the plan, liability would first increase to 75%, before rising to 100% in a second stage.
The higher charges are intended to encourage occupation, cut long‑term vacancy and raise up to £20 million a year in additional revenue.
The existing three‑month period during which no rates are charged on newly vacant properties, along with the current full exemptions for cases involving insolvency and listed buildings, would remain in place.
RSUA background
RSUA previously welcomed a November 2025 announcement from the Minister of Finance which indicated that NDVR would eventually be increased to 100%, aligning directly with a key point made in RSUA’s September response to his Department’s survey on the subject.
Our reasoning was that the current 50% rating liability for vacant commercial properties created an unfair advantage for owners who leave buildings empty, while those actively occupying premises paid rates in full.
Have your say
The full consultation document can be accessed here. The deadline for responses is Wednesday 23 September 2026.
RSUA is preparing a response to this consultation. If you would like to share your views, please contact Curtis Large, RSUA Policy and Public Affairs Officer, at curtis@rsua.org.uk
