In the Budget 2025, the Chancellor announced permanent lower business rates for some retail, hospitality and leisure properties from April 2026, when a new five-category multiplier structure will apply. It introduces a clear distinction between Retail, Hospitality and Leisure (RHL) properties and all other commercial properties, as well as a new band for high-value premises. The categories will be:

• Small Business Multiplier – non-RHL properties with a rateable value under £51,000
• Small Business RHL Multiplier – RHL properties under £51,000
• Standard Multiplier – non-RHL properties £51,000–£499,999
• Standard RHL Multiplier – RHL properties £51,000–£499,999
• High-Value Multiplier – all properties £500,000 and above.

The Chancellor also announced that a business rates support package will cap business rates bill increases for sectors hit hardest by revaluations from April 2026 – more on this below. The wider package includes:

• a redesigned transitional relief scheme that caps bill increases to provide more generous support for larger properties, including airports, hotels and key industrial strategy properties
• a supporting small business scheme capping bill increases for the smallest businesses losing some or all of their small business rates relief or rural rate relief. The government has expanded this scheme to ratepayers losing RHL relief to offer further support as RHL properties transition to permanently lower tax rates
• extending the period that properties eligible for Small Business Rates Relief retain relief on their first property from one year to three years after acquiring a second property.

The new business rates multipliers – calculated based on rateable values (RV) – for the categories as shown above will be:

Some businesses in England are eligible for a reduction in their business rates bill. This is called ‘business rates relief’. Further details of the types of businesses that are eligible for relief and the amounts of relief available can be found at GOV.UK. 

Revaluations from April 2026

The Valuation Office Agency (VOA) has updated the rateable values of all commercial, and other non-domestic, properties in England and Wales. These future values will take effect from 1 April 2026. Some properties may therefore see an increase in their business rates as a result of increased rateable values despite the business rates multipliers being reduced for 2026/27.

Businesses can check an estimate of their future business rates bill as well as find out how their rates bills are calculated. There is also a facility to request changes to your current valuation. Businesses have until 31 March 2026 to request any changes to their current rateable value. After 1 April 2026 businesses will only be able to make changes to their future rateable value. Further details can be found at GOV.UK. 

Business rates in Wales

The draft Welsh Budget 2026/27 maintains revenues from non-domestic rates (NDR) in real terms but does not include further funding to extend the retail, leisure and hospitality rates relief scheme. The Welsh government’s plans for NDR in 2026/27 will be determined as part of the preparations for the final Budget, which will be published on 20 January 2026. Read more about the current rates, valuations and appeals.

Separately, the Cabinet Secretary for Finance and Welsh Language, Mark Drakeford MS, recently announced non-domestic rates support for 2026-27.

This includes the introduction of new multipliers and transitional relief: read the written statement.

Business rates in Scotland

The Scottish budget for 2026/27 will be published on 13 January 2026. Read the details of the current rates, valuations and appeals.