The 2025 Autumn Budget brought the most significant overhaul to the business-rates system in over a decade. For many agricultural, garden and ground-care machinery dealers – who often operate from a mix of showrooms, workshops, storage yards, and rural depots – these changes could potentially affect predicted operating costs from April 2026 onwards.

This briefing outlines what has changed, how the changes could affect the Ratable Value of BAGMA member’s properties, and what dealers should be thinking about in the coming months.

Ahead of the new Rating List start date, the opportunity to appeal any over assessments of business rates over the current list (1st Apil 2023-31st March 2026) will expire at the end of the financial year. This one-time chance to reduce your business rates and secure rebates for the last 3 years should not be overlooked.

The New Business Rates Structure — What’s Changing?

From April 2026, the government will move from the current two-tier multiplier system to a new five-tier structure. Key points include:

  • 2 x Lower multipliers for Retail, Hospitality & Leisure (RHL) properties with rateable value below £500,000.
  • A higher “premium” multiplier for all properties with a rateable value above £500,000.
  • A government-funded £4.3bn transitional support package to cushion sudden increases in liability.
  • Continuation of Supporting Small Business Relief for firms that lose access to several reliefs.

Because many machinery dealerships fall into a grey area — part retail, part workshop, part light industrial — the way each site is assessed will matter more than ever. The value of mixed-use premises will be dependent upon their layout, size, and how space is categorised.

What This Means for Dealers Operating Smaller Premises

Some BAGMA members are likely to run modest-sized operations which could include:

  • A single retail showroom
  • A service and repair workshop
  • An on-site parts counter
  • Small external storage areas or hard standing

If the total rateable value remains under £500,000, these businesses may benefit from:

✔ Lower business-rates multipliers than seen in previous years

✔ Improved predictability in costs after years of inconsistent discretionary retail relief schemes

✔ A smoother transition thanks to the new three-year transitional relief package

This could offer meaningful breathing space, particularly for rural or semi-rural dealerships where property values tend to be lower than large commercial estates.

Mixed-Use Dealerships Should Pay Close Attention to Valuation

Many BAGMA members operate hybrid sites that combine:

  • Retail showrooms
  • Servicing and repairs
  • Parts stores
  • Offices
  • Yard space or hard standing for used machinery
  • Machinery storage barns or sheds

Under the new system, how your property type is classified will directly influence which multiplier applies and whether part or all of the sites may qualify for RHL status.

Dealers should be ready to:

  • Check property boundaries and floor-area measurements
  • Ensure that parts of the premises are not mis-categorised
  • Review whether the site layout has changed since the last valuation
  • Understand how workshops vs retail areas may be treated

An accurate review of assessments can prevent overvaluation.

Transitional Support Provides a Short Window for Planning

The new three-year support scheme will soften immediate shocks, but it will not eliminate increases for those moving into higher multiplier bands. Dealers should use this period to:

  • Model business-rates exposure after transition has ended
  • Assess whether under-utilised areas could be reconfigured
  • Revisit expansion plans in light of the high-value multiplier
  • Consider how rateable-value changes might impact lease terms

For some operators, this may be the right moment to review whether current premises remain optimal in the long term

Wider Budget Measures Relevant to Machinery Dealers.

Beyond business rates, several Budget themes may indirectly affect BAGMA members:

Manufacturing & Industrial Strategy

Dealers connected to machinery manufacturing or assembly may benefit from longer-term investment incentives and supply-chain support.

Capital investment and skills

Workshops upgrading diagnostic equipment, EV/alternative-fuel servicing capability, or technician training should monitor upcoming schemes closely.

Energy efficiency and site modernisation

Given the energy-intensive nature of workshops and showrooms, forthcoming incentives around insulation, heating systems, and solar installations may reduce operating costs.

None of these measures were fully detailed in the Budget — but further announcements are expected

 

While every dealership’s circumstances differ, BAGMA members may find the following steps useful before the new regime goes live:

1. Review your rateable value early
Check whether your premises’ valuation is still accurate, especially if layout, floor area or usage has changed.

2. Understand which multiplier your premises will fall into
This will drive your future liability more than any other single factor.

3. Assess whether your dealership qualifies as a RHL property
Showrooms and parts counters could benefit — but workshops or storage may not.

4. Model costs now, before transitional support begins
Many increases will be phased in — early planning helps smooth budgeting.

5. Keep an eye on appeals windows
Dealers who believe their valuation does not reflect the layout and usage of their site should be ready to challenge it promptly.

 

The Autumn Budget represents both opportunity and risk for agricultural, garden and ground-care machinery dealers. Smaller, retail-led sites may see real benefits under the new lower multipliers, whilst larger, warehouse-heavy or multi-site operations may face relatively high costs under the premium rate multiplier.

For all BAGMA members, the key is early awareness. Understanding where your premises sit within the new framework — and how valuations may shift — will be essential in protecting margins and planning confidently for 2026 and beyond.

For more information and an initial high-level review, please email bagma@quoinstone.consulting or try our rates bot so see if we can help you reduce your rates liability.

 

When in Doubt, Get in Touch
If anything changes in how you use or occupy a property, tell us right away. Timely advice can help avoid overpayments and capture all available reliefs.

Let us help you proactively manage your business rates.

Contacts

Katy Ellis: katy@quoinstone.consulting +44 (0)7796 356 558
Clive Schless: clive@quoinstone.consulting +44 (0)7503 948 790
Billy Struth: billy@quoinstone.consulting +44 (0)7824 705 955
Department: info@quoinstone.consulting +44 (0) 20 3393 3314