Property consultancy Vail Williams has welcomed a Government U-turn on marinas being excluded from lower rate multipliers in the forthcoming business rates revaluation as a ‘victory for common sense’.
The firm, which acts for a number of the UK’s top marina operators covering multiple sites, is now conveying the news to clients.
This move brings marinas into the same category as retail and leisure businesses such as pubs and restaurants. Business rates will continue to be administered by local authorities.
The Valuation Office Agency (VOA) updated the rateable values of all commercial, and other non-domestic, properties in England and Wales which take effect from 1 April.
The Government announced that from 2026/27, existing business rate relief for retail, hospitality or leisure (RHL) properties would be replaced by a lower rates multiplier to calculate the business rates payable on those properties.
However, marinas were specifically excluded from the RHL lower rates multiplier and faced being subjected to the standard business rates multiplier which applies to non-RHL business properties.
Following a campaign backed by industry body British Marine, the Government has announced a refinement in the Statutory Instrument (SI) defining which properties would be eligible for the new RHL business rates multipliers that will be coming into effect in April.
Dan Tomlinson, Exchequer Secretary to the Treasury announced the change in a letter to British Marine CEO Lesley Robinson. He said:
“I recognise that marinas are distinct from transport properties and that they form part of the infrastructure of leisure activity. Furthermore, the intention has always been for the scope of the new multipliers to broadly reflect the scope of the current RHL relief. Thank you for bringing to my attention that local authorities are currently awarding RHL relief to marinas."
“The Government will therefore be amending the SI ahead of the policy coming into force on 1 April to remove marinas from Schedule 1. This means that marinas with rateable values below £500,000 and that are wholly or mainly used for leisure/recreational purposes will be eligible for the lower business rates multipliers.”
“Ahead of then, the online guidance will be updated, and local authorities will be made aware of the upcoming amendment.”
The reversal means that qualifying marinas will benefit from the 43 pence RHL rate, rather than the standard 48 pence rate.
Vail Williams partner and head of business rates Adam Barnfield said:
“This U-turn can be considered to be a victory for common sense and will benefit the vast majority of marinas which qualify for the lower business rates multipliers."
“However, there have been significant increases in the VOA assessments of the rateable value applied to marinas, with an average 23% increase in values and an additional £5.8 million of rateable value” – which equates to approximately £2.5m in additional revenue for the treasury.”
“Although this is obviously a welcome change in stance from Government, the increase in RV and the removal of the existing retail, hospitality and leisure relief will still have a significant impact on business rates liabilities.”
Ian Froome, Vail Williams partner and head of marine & leisure, added that the upcoming amendment regarding lower rates measures would be welcomed by marina operators as a silver lining, but there would certainly be increased costs all around.
“We cannot say there will be euphoria regarding this refinement in the revaluation process, but it is a cushioning of the significant increases faced by marina operators and should be accepted as such.”
Business rates revaluation 2026.
