Business rate changes from 1 April 2026
The government is introducing changes to business rates in the new financial year.
Multipliers
There will be 5 business rate multipliers instead of 2, including new multipliers for Retail, Hospitality and Leisure (RHL) properties.
- 2 lower multipliers for RHL properties with rateable values under £499,999
- 1 high-value multiplier for properties with a rateable value of £500,000 or above
The RHL multipliers will replace the Retail Hospitality and Leisure Relief Scheme.
| Multiplier type | Rateable Value (RV) | Multiplier |
|---|---|---|
| Small Business Multiplier | Below £51,000 | 43.2 pence |
| Small Business RHL Multiplier | Below £51,000 | 38.2 pence |
| Standard Multiplier | £51,000 to £499,999 | 48.0 pence |
| Standard RHL Multiplier | £51,000 to £499,999 | 43.0 pence |
| High-Value Multiplier | £500,000 or over | 50.8 pence |
Retail, hospitality and leisure properties
RHL multipliers will only apply if:
- your property is occupied
- it has a rateable value below £500,000
- it's wholly or mainly used for retail, hospitality and leisure purposes
- it's open to visiting members of the public
For more details, check our retail discount page.
Revaluations
With effect from 1 April 2026, all non-domestic properties in England and Wales will have their rateable values updated by the Valuation Office Agency (VOA). The VOA carries out a revaluation every 3 years to reflect changes in the market.
The rateable value is multiplied by the relevant multiplier to calculate your business rates bill. Any reliefs you are eligible for will be applied to your bill after this calculation.
Transitional relief
The government is introducing a 3 year transitional relief scheme to phase in the rateable value increases. Under this scheme, your business rates will change by no more than the percentage caps for each year, as shown in this table.
| Rateable value | 2026/27 percentage cap | 2027/28 percentage cap | 2028/29 percentage cap |
|---|---|---|---|
| Up to £28,000 | 5% | 10% plus inflation | 25% plus inflation |
| £28,001 to £100,000 | 15% | 25% plus inflation | 40% plus inflation |
| Over £100,000 | 30% | 25% plus inflation | 25% plus inflation |
Supporting Small Business Relief
SSBR will be available to help ratepayers who have seen large increases to their bills as a result of losing some or all of their:
- Small Business Rate Relief
- 40% Retail Hospitality and Leisure Relief
- 2023 Supporting Small Business Relief (2023 SSBR)
The increase will be capped at £800 or the relevant transitional relief cap, whichever is greatest.
This support is applied before changes in other reliefs or supplements.
For ratepayers receiving 2023 SSB relief on 31 March 2026 (including those also receiving SBRR and/or RHL Relief on the same date), any eligibility for 2026 SSBR will end on 31 March 2027. All other eligible ratepayers will remain in 2026 SSBR for either 3 years or until they reach the bill they would have paid without the scheme.
Small Business Rate Relief grace period
Businesses will now keep their SBRR on their first property for 3 years, after they take on a second property, instead of 1 year.
Pubs and Live Music Venues Relief
Eligible pubs and live music venues will benefit from a 15% business rates relief on top of the support set out above. Their bills will then be frozen in real terms for a further two years.
Electric vehicle charging point relief
There will be 100% business rate relief for 10 years for:
- electric vehicle charging points
- electric vehicle only forecourts
The Valuation Office Agency assesses these separately to ensure they face no business rate liability.
Last updated: 4 March 2026