Business rates changes
Changes in 2026
At the Autumn Budget on 26 November 2025, the Chancellor announced some changes to business rates from 1 April 2026. These include:
Multiplier changes
The introduction of 2 new Retail, Hospitality and Leisure (RHL) multipliers as well as a high-value multiplier for properties with a Rateable Value (RV) of £500,000 or above.
The standard multipliers will remain but will be 5p higher than the RHL multipliers.
Therefore the 5 multipliers will be:
- RHL Property RV <£51,000 38.2p
- RHL Property RV >£51,000 43.0p
- Standard business Property RV <£51,000 43.2p
- Standard business Property RV >£51,000 48.0p
- High-value multiplier 50.8p
Small Business Rates Relief extension
All small businesses that take on a second property from 27 November 2025 will retain their Small Business Rate Relief (SBRR) on the original property for 3 years.
Transitional Relief Scheme
The above changes coincide with a property revaluation (the last one being 2023). A newly funded Transitional Relief scheme will be introduced. This will be applied automatically to your bill.
Supporting Small Businesses Scheme
To help businesses who may face higher bills due to the removal of RHL Relief, or who may lose their SBRR or Rural Rate Relief, a new Supporting Small Business Scheme will take effect from 1 April 2026. The effect of this will be to limit bill increases to £800 a year (previously £600 a year). If you would qualify for more relief under the Transitional Rate Relief Scheme, that will be applied instead. Again, this will be applied automatically to your bill.
Transitional Relief Supplement
If your business does not qualify for either of the Transitional Relief or Supporting Small Business Schemes, you will be charged an additional 1p on your multiplier. This will be used to fund the Transitional Relief Scheme.
Pubs and Live Music Venues Relief (announced 27/01/2026)
Eligible pubs and live music venues will receive a 15% rates relief on top of the support announced at the Budget 2025. Their bills will then be frozen in real terms for a further 2 years.
Electric Vehicle Charging Point Relief
Details on this are yet to be confirmed, but we are advised that these hereditaments will be entitled to a 100% relief for 10 years. Once the regulations have been laid, we will update this page with the full details.
We may be able to automatically update your bills for the new financial year to show the relief your business is entitled to. Your new bills will be issued in March 2026.
Changes in 2025
At the Autumn Budget on 30 October 2024, the Chancellor announced some changes to business rates from 1 April 2025. These include:
- The small business rates multiplier will be frozen at 49.9p for properties with a rateable value of less than £51,000.
- The standard business rates multiplier will increase by 1.6% to 55.5p.
- The Retail, Hospitality and Leisure (RHL) relief scheme will be extended for one year for 2025/26, retaining the existing eligibility criteria but reducing the level of relief to 40%, up to a cap of £110,000 per business.
- From April 2025, charitable rate relief will no longer be applicable to private schools, however this change is subject to Parliamentary process and we are awaiting final instructions.
The Non-Domestic Rating Act 2023
In October 2023 the Non-Domestic Rating Act was passed, resulting in some changes to business rates that will start in April 2024. This includes:
- From 1 April 2024 all rates bills for properties with a rateable value of less than 51,000 will be calculated using the small business rates multiplier. This means bills for organisations that receive 80% mandatory relief and empty properties will be calculated using the small multiplier and will no longer be charged the small business supplement.
- Some businesses that make improvements to their property will have the increase in rateable value in relation to the improvements disregarded for 12 months. Improvement Relief will be granted on their rates bill to delay the increase in their bill.
- Heat Network relief will become mandatory. No other changes have been made to the scheme.
- Revaluations will take place every three years, rather than every five years. This means that the rateable value of properties will be reviewed more frequently and should keep up with market changes.
We may be able to automatically update your bills for the new financial year to show the relief your business is entitled to. Your new bills will be issued in March 2025.