Changes to business rates from 1 April 2026

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

Non-domestic rates multipliers – 2025 to 2026 and 2026 to 2027
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.

Transitional relief percentage increase caps per year 2026 to 2029
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.