A factory's rateable value for business rates is an estimate of the annual rent the premises could have commanded on 1 April 2024, set by the Valuation Office Agency (VOA) and now driving every 2026-27 bill in England. Multiply that rateable value by the applicable multiplier — 43.2p, 48p or 50.8p per pound — and you have the starting point of the bill. Most factory owners never see the workings behind the number, which is exactly why floor-area, site-use and plant-and-machinery errors go unchallenged.
- Factories are valued on the rental comparison method using rents at 1 April 2024.
- The VOA measures industrial premises on gross internal area (GIA).
- 2026-27 multipliers run 43.2p under £51,000, 48p to £499,999, 50.8p at £500,000 or more.
- Some plant and machinery counts toward the rateable value; the VOA publishes which items.
- A Challenge must be submitted within 4 months of the Check response.
How are factories valued for business rates?
The VOA uses the rental comparison method wherever there is lease and rent evidence, and its guidance names factories and warehouses among the property types valued this way, alongside shops, offices and cafes. The valuer looks at what comparable premises let for around the valuation date and works back to a rateable value for yours.
Measurement follows the same rules as the rest of the stock: industrial units are measured on gross internal area, the full footprint inside the external walls. That single figure — the recorded floor area — carries more of the valuation than anything else on the entry.
The contractor's basis, which values a property from its build cost, is reserved for premises that are rarely let, such as schools, hospitals and airports. Ordinary factories do not fall into that category, so if your assessment seems to rest on build cost rather than rental evidence, that is a question worth raising at the Check stage.
Is plant and machinery included in a factory's rateable value?
Some of it can be. Rating law draws certain plant and machinery into the assessment and leaves the rest out, and the VOA publishes detailed guidance on how non-domestic property including plant and machinery is valued. Whether a specific item counts depends on how it is fixed, what it serves and when it was installed — the rules are intricate enough that getting them wrong in either direction distorts the valuation. It is one of the first things a rating surveyor reviews against the entry.
What multiplier applies to a factory in 2026-27?
From 1 April 2026, England uses five multipliers. Factories pay the standard ones:
| Rateable value | Multiplier | Who pays it |
|---|---|---|
| Under £51,000 | 43.2p | Standard small business rate — factories included |
| £51,000 to £499,999 | 48p | Standard rate — factories included |
| £500,000 or more | 50.8p | High-value properties, all uses |
| Under £51,000 | 38.2p | Retail, hospitality and leisure only — not factories |
| £51,000 to £499,999 | 43p | Retail, hospitality and leisure only — not factories |
These figures run from 1 April 2026 to 31 March 2027 and apply in England; the City of London sets some rates differently, and Wales runs a separate devolved system.
Why factory valuations go wrong
- Measured area. The recorded gross internal area is often out of date after extensions, mezzanines or partial demolitions that nobody reported to the VOA.
- Site use. Yards, storage land and parking are rated differently from buildings, and a site-plan mismatch changes the assessment.
- Plant and machinery inclusions. Items that should sit outside the valuation inflate it; items that belong inside but were missed cut it — both are appealable.
- Comparable rents. The valuation rests on evidence at 1 April 2024. Rents agreed since then say nothing about whether the value was right.
- Transitional relief masking the change. Phased bills can hide an underlying valuation error for years, which is why the value itself is worth checking even when the cash bill looks stable.
What Make UK says about 2026-27 factory bills
Make UK, the manufacturers' trade body, estimates factories across the country will pay £939m more in business rates in 2026-27 after the changes that took effect in April 2026. The trade body also argues the sector faces a disproportionate hit because factories occupy much larger footprints than most premises, and that large sites above the £500,000 threshold now attract the 50.8p high-value multiplier. Treat the figure as an industry estimate, not a forecast for your site: your own bill depends on your rateable value and the multiplier your council applies.
Can you challenge a factory's rateable value?
The route is Check, Challenge, Appeal, and it runs through your business rates valuation account on GOV.UK:
- Check — ask the VOA to confirm the factual details: floor areas, site boundaries, use, plant inclusions. Free, and it often settles the case.
- Challenge — if the Check does not resolve it, submit a formal Challenge with your full evidence within 4 months of the Check response. The VOA has up to 18 months to decide.
- Appeal — if you disagree with the decision notice, appeal to the Valuation Tribunal for England within 4 months. The fee is £150 or £300 depending on the case, refunded if the appeal succeeds.
Keep paying the bill as issued while the case runs. Our appeal guide walks through each stage in detail.
Related questions
How do I check my factory's rateable value?
Look the property up on the rating list through the GOV.UK finder or your VOA account, and compare the recorded details — area, boundaries, plant — against a current measured survey. Our manual rateable value calculation guide shows how to test the number against rental evidence.
Does challenging a valuation risk a higher bill?
Yes, it can move the value either way — a challenge is a review of the facts, not a one-directional claim. That is why the evidence review comes first: if the recorded details and comparables support the current value, leave it alone.
How long does a factory rates appeal take?
There is no fixed period. The Check is usually quick, the VOA can take up to 18 months over a Challenge, and a tribunal appeal adds its own timetable. Our appeal timing guide breaks the stages down.
FAQ
How is a factory valued for business rates?
Through the rental comparison method: the VOA estimates the annual rent the premises could have commanded at 1 April 2024, using comparable factory and warehouse rents. Industrial space is measured on gross internal area.
What multiplier applies to a factory in 2026-27?
43.2p for a rateable value under £51,000, 48p between £51,000 and £499,999, and 50.8p at £500,000 or more. The lower retail, hospitality and leisure rates do not apply to factories.
Is plant and machinery included in the rateable value?
Some plant and machinery counts toward the valuation and some does not, under detailed VOA rules on how items are fixed and what they serve. Review the entry against the guidance before challenging.
What is the valuation date for the 2026 revaluation?
1 April 2024. Every rateable value in the new list reflects open market rental values on that date, not current rents.
How long do I have to challenge my factory’s valuation?
Submit a free Check first, then a formal Challenge within 4 months of the Check response. The VOA then has up to 18 months to issue its decision.
What happens if the VOA rejects the Challenge?
You can appeal to the Valuation Tribunal for England within 4 months of the decision notice. The £150 or £300 fee is refunded if the appeal succeeds.
One last thing
Factories are measured on gross internal area — inside the external walls, including the full footprint of attached offices and welfare space. If your surveyor's measurement differs from the VOA's recorded figure, that gap alone justifies a Check request before any argument about rents even starts.
Let us handle your case
Appeal My Rates UK will review your factory’s rateable value, plant inclusions and reliefs free, before any fee is agreed.
Related guides
- Manufacturing Business Rates: Valuation Checks That Matter
- How much does a business rates surveyor charge?
