From April 2026, the UK Government will introduce five new business rates multipliers. These reforms aim to create a fairer, modern business rates system that encourages investment and helps protect the high street.
Key summary of changes
- Autumn Budget 2025 Business Rate relief package
- Retail, hospitality and leisure relief (RHL) ends on 31 March 2026
- New non-domestic rates multipliers to be introduced from 1 April 2026
- Revaluation 2026
Budget 2025 business rates relief package
At the Autumn Budget on 26 November 2025, the Chancellor announced a package of measure which provide support to businesses in England.
- Non-Domestic Rates multipliers for 2026/27
- Transitional relief scheme
- Supporting Small Business Scheme
- Extending the Small business Rate Relief grace period
- 100% relief for Eligible Electric Vehicle Charging Points and Electric Vehicle only forecourts
What’s Changing
The current system uses two multipliers based on property rateable value:
- Small business multiplier: for properties with a rateable value (RV) below £51,000
- Standard multiplier: for properties with an RV of £51,000 and above
From April 2026, the system will expand to five multipliers. These will reflect both business type and property value.
New multipliers from April 2026
Current system (2025-26):
- Small business multiplier, all properties RV below £51,000
- Standard multiplier, all properties RV £51,000 and above
New system (2026-27):
- Small business RHL mulitiplier, RHL properties only, RV below £51,000
- Small business multiplier, non-RHL properties, RV below £51,000
- Standard RHL mulitplier, RHL properties only, RV £51,000 - £499,999
- Standard multiplier, non-RHL properties only, RV £51,000 - £499,99
- Large multiplier, all properties, RV £500,000 and above
Unlike the RHL business rates relief in place in 2025/26, there will be no cash cap. Therefore, all hereditaments that meet the legislative definition of qualifying RHL and that have RVs below £500,000 will be within scope of the RHL multipliers. This means that all qualifying properties in a chain will benefit from the lower multipliers.
The Non-Domestic Rating (Definition of Qualifying Retail, Hospitality or Leisure Hereditament) Regulations 2025 determines that the RHL multipliers will only apply to occupied hereditaments which are “wholly or mainly” used for a qualifying purpose.
