The new business rates changes are part of wider reforms to create a fairer, more modern system that supports investment and protects the high street.
These changes may affect the amount that you pay. The key changes are:
- business rates revaluation 2026
- retail, hospitality and leisure relief ends on 31 March 2026
- new non-domestic rates multipliers to be introduced from 1 April 2026
- Budget 2025 – business rates relief package
Changes to business rates valuations
Every 3 years, the government's Valuation Office Agency (VOA) updates the rateable values of non-domestic properties in England and Wales.
This process is called a 'revaluation', which assesses:
- the value of your non-domestic property based on the rental market
- your organisation's trading information
- yearly cost of providing a replacement property
The new rating list started from 1 April 2026 and may have resulted in your bill going up, down or staying the same depending on your property's updated valuation.
For information, go to help with the 2026 business rates revaluation – GOV.UK.
Changes to business rates multipliers
As well as the revaluation, the government has increased the number of multipliers from 2 to 5.
This change aims to support retail, hospitality and leisure (RHL) businesses by giving them lower multipliers and requiring large high-value properties to pay more.
New multipliers
| Multiplier name | Eligible properties | Multiplier amount 2025 to 2026 | Multiplier amount 2026 to 2027 |
|---|---|---|---|
| Small business RHL multiplier | RHL properties with a rateable value under £51,000 | New multiplier - not available | 38.2 pence |
| Standard RHL multiplier | RHL properties with a rateable value between £51,000 and £499,999 | New multiplier - not available | 43 pence |
| National small business multiplier | Non-RHL properties with a rateable value under £51,000 | 49.9 pence | 43.2 pence |
| National standard multiplier | Non-RHL properties with a rateable value between £51,000 and £499,999 | 55.5 pence | 48 pence |
| High-value multiplier | All properties (RHL and non-RHL) with rateable values of £500,000 or above | New multiplier - not available | 50.8 pence |
Multipliers are shown in pence per pound of rateable value (RV).
Budget 2025 – business rates relief package
At the 2025 Budget, the government's Chancellor announced a package of measures which provides support to businesses in England and Wales.
Transitional relief
If your bill goes up due to the 2026 revaluation, transitional relief limits the increase on your bill. It is calculated automatically.
Your business rates will have changed by no more than the percentage caps listed in the table.
| Type of property | 2026 to 2027 cap | 2027 to 2028 cap | 2028 to 2029 cap |
|---|---|---|---|
| Small property with a rateable value of £20,000 or less | 5% | 10% plus inflation | 25% plus inflation |
| Medium property with a rateable value between £20,000 and £100,000 (or equal to £100,000) | 15% | 25% plus inflation | 40% plus inflation |
| Large property with a rateable value of over £100,000 | 30% | 25% plus inflation | 25% plus inflation |
Transitional relief supplement
The new multiplier system increases contributions for larger businesses who occupy properties with the highest rateable values.
A 1 pence supplement is added for ratepayers who do not receive either transitional relief or supporting small business scheme.
This is to partially fund transitional relief.
Supporting small business relief scheme
You may get supporting small business relief if both of the following apply:
- your business property's bill increased at the last revaluation (1 April 2026)
- you lost some or all of your small business rate relief, retail hospitality and leisure relief (RHL) or 2023 supporting small business relief
If eligible, your bills will go up by no more than £800 or the relevant transitional relief percentage cap from 1 April 2026 – whichever is greater.
Small business rates relief grace period extension
Your business keeps its small business rates relief on its first property for 3 years after its take on a second property. This is instead of relief for just 1 year.
Vehicle charging points and electric vehicle only forecourts (EVCP) relief
A 10-year 100% business rates relief applies to EVCPs (separately assessed by the VOA) and electric vehicle only forecourts to ensure that they face no business rates liability.
The regulations will be published in due course.
Pubs and live music venues business rates relief
In January 2026, the government announced a new business rates relief scheme to support eligible pubs and live music venues in England for the 2026 to 2027 financial year.
The scheme provides a 15% relief for eligible pubs and live music venues in 2026 to 2027. This is applied on top of any other reliefs you already receive. Bills are then be frozen for the next 2 years.
To find out if you are eligible, go to pubs and live music venues relief – GOV.UK.