On 1 April 2026, the government will introduce a new system for business rates. This will take place alongside a revaluation of all non‑domestic properties.
The changes will create permanently lower tax rates for qualifying retail, hospitality and leisure (RHL) properties, and a higher rate for high‑value hereditaments. Transitional support will cap large bill increases.
All non-domestic properties will receive new rateable values, effective from 1 April 2026. These might differ from their previous values, which will in turn affect the amount of business rates they are charged.
The current two multipliers (small business and standard) will be replaced with five multipliers that reflect both property use (RHL or non‑RHL) and rateable value band.
The current temporary RHL relief (40%, capped at £110,000) ends on 31 March 2026. It will be replaced by permanently lower multipliers from April 2026.
A higher multiplier will apply to high‑value properties with a rateable value of £500,000 or more.
For more information, check the government’s guidance about business rates multipliers for retail, hospitality and leisure properties.
New multipliers for 2026/27
The multipliers for England (pence in the pound) from 1 April 2026 will be:
- Small businesses with a rateable value under £51,000:
- Retail, hospitality and leisure businesses: 38.2p
- Non-RHL businesses: 43.2p
- Standard businesses with a rateable value under £500,000:
- Retail, hospitality and leisure businesses: 43p
- Non-RHL businesses: 48p
- High‑value businesses with a rateable value of £500,000 or more: 50.8p
2026 revaluation and support package
The government has published future rateable values that will take effect from 1 April 2026. Revaluations occur every three years and ensure bills reflect market changes.
To help ratepayers adjust, the government announced a support package worth £4.3 billion over three years, including:
- a redesigned Transitional Relief scheme, capping annual bill increases with more generous support for larger ratepayers
- an expanded Supporting Small Business scheme, including businesses losing RHL relief, plus an extension of the 2023 scheme
Transitional relief
For transitional arrangements, your ‘base liability’ multiplied by the ‘appropriate fraction’ represents the maximum amount your bill can increase.
- Base liability is your annual business rates liability for the previous financial year.
- The appropriate fraction sets the maximum percentage by which your bill can increase following the revaluation.
The transitional relief is the difference between your full annual charge for the current year, and the capped amount. This capped amount is shown on your bill.
| Rateable value | 2026/27 | 2027/28 | 2028/29 |
|---|---|---|---|
| Small: up to £20,000 | 5% | 10% plus inflation | 25% plus inflation |
| Medium: £20,001 to £100,000 | 15% | 25% plus inflation | 40% plus inflation |
| Large: over £100,000 | 30% | 25% plus inflation | 25% plus inflation |
Supporting small business relief
Your bills will go up by no more than £800 or the percentage caps listed in the table above (whichever is greater) for the 2026/27 tax year, if you have lost some or all of your:
- small business rate relief
- retail hospitality and leisure relief
- supporting small business relief (2023 scheme)
Transitional relief supplement
For 2026/27, businesses that are not eligible for transitional relief or supporting small business relief are required to pay a 1p supplement on top of their appropriate business rate multiplier.
The supplement will appear on all business rates bills. You only pay this charge if you do not receive transitional relief or supporting small business relief. If you do receive one of these reliefs, the supplement is shown on the bill but is automatically deducted within the relief calculations, so you are not charged for it.
You do not need to contact us. Any relief you are eligible for will already be applied to your rates bill.
What we are doing
We’re reviewing current and potential retail, hospitality and leisure properties to make sure each hereditament is billed with the correct multiplier from April 2026. We may contact some businesses to confirm use and rateable value band.
Where the national Transitional Relief or Supporting Small Business schemes apply, we will apply it automatically to eligible accounts. You do not need to apply for them.
We will issue bills for 2026/27 in March 2026. They will reflect the 2026 rating list and the relevant multipliers.
What you can do now
- Check your property’s rateable value, including its future rateable value for 2026.
- Contact the government if you want to challenge your business rates valuation.
- Subscribe to GOV.UK updates about business rates reforms.
- Contact us if your property’s use has changed.
