The 2026 business rates revaluation has brought new rateable values for commercial properties in England and Wales. For warehouse operators already managing labour, energy and distribution costs, it is another reason to review how efficiently existing space is being used.
While a better warehouse layout will not automatically reduce your business rates bill, it can help you store more stock, improve picking operations and make better use of the space you already pay for.
What does the 2026 business rates revaluation mean for warehouses?
The Valuation Office updated rateable values for non-domestic properties in England and Wales on 1 April 2026, using rental market evidence from 1 April 2024. Rateable value is one element used to calculate a business rates bill; it is not the bill itself.
A warehouse’s valuation reflects its particular property characteristics and market evidence. Operators should check their property details and valuation rather than assume that a national average increase applies to their site. For an explanation of the changes, see the official 2026 revaluation guidance.
In England, transitional relief may limit eligible bill increases over the 2026–2029 rating years. The effect depends on the property and its circumstances. Check your council’s bill and seek advice from a qualified rating surveyor where necessary.
Why warehouse space optimisation matters
Rising property costs make the performance of every square metre more important. STS regularly sees opportunities to increase stock capacity and improve pick efficiency by rethinking storage layouts and picking methods, rather than immediately seeking larger premises.
The objective is practical: improve the amount of stock held and the volume of work completed within the existing footprint. That can reduce the operational cost per pallet stored or order picked, even when the rates bill itself stays the same.
Five ways to make your existing warehouse work harder
1. Review the warehouse layout
Assess aisle widths, access routes, pallet positions and goods movement. A revised layout may uncover capacity lost to inefficient storage arrangements, while preserving safe access and suitable handling clearances.
2. Make better use of available height
Where building dimensions, equipment and load requirements allow, appropriately designed high-bay or higher-density pallet racking can increase capacity without expanding the building footprint.
3. Match storage systems to stock movement
Fast-moving products need accessible pick locations; slower-moving or bulk stock may suit different arrangements. The right combination of storage and picking methods can reduce travel and handling time.
4. Review goods-in, picking and dispatch flows
Bottlenecks around receiving, replenishment and dispatch can limit output. Map the movement of stock and people before changing layouts, so improvements support day-to-day operations.
5. Explore mezzanine floor opportunities
Where the site is suitable, a mezzanine floor can create additional operational or storage space within the existing building. Obtain structural, safety, planning and rating advice before proceeding: additional floors or alterations can affect property assessment.
How STS Storage Systems can help
STS has supported UK warehousing and distribution businesses since 1981, designing storage layouts and systems that make better use of available space. From warehouse surveys and space planning to pallet racking and mezzanine floor installations, the focus is on practical capacity and efficiency improvements.
Explore our pallet racking solutions, mezzanine floor systems and warehouse refurbishment and fit-out services to see how the right layout can support your operation.
Frequently asked questions
When did the 2026 business rates revaluation take effect?
The new rateable values came into effect on 1 April 2026 in England and Wales.
Will every warehouse see the same increase in business rates?
No. The effect depends on the individual property, applicable multipliers, reliefs and local circumstances. A change in rateable value does not necessarily mean the same percentage change in the bill.
Can warehouse optimisation reduce business rates?
Improving layout or storage density does not automatically lower rateable value. It can, however, improve operating efficiency. Physical alterations may affect valuation, so obtain specialist advice before making changes.
Make more of your existing warehouse space
If your warehouse is under pressure to hold more stock or improve picking performance, STS can help you assess the opportunities. We offer a free initial on-site survey and preliminary design to help you consider suitable solutions, budgets and potential return on investment.
Speak to STS about a free warehouse survey: contact the STS team or call 01753 364109.