Business rates changes from April 2026

Business rate changes to come into effect from 1 April 2026:

• Retail Hospitality and Leisure relief (RHL) ends on 31 March 2026
• New Business Rates multipliers are introduced from 1 April 2026
• 2026 Revaluation
• Transitional Relief
• 2026 Supporting Small Business (SSB) scheme
• Pubs and Live Music Venues Relief

New multipliers for 2026/27

The two multipliers (small business and standard) in force until 31 March 2026 will be replaced with five new multipliers that reflect both property use and the Rateable Value (RV).

The 40% RHL relief (capped at £110,000) ends on 31 March 2026, replaced by permanently lower multipliers from 1 April 2026.

A higher multiplier will apply to high‑value properties with a RV of £500,000 or more.

The new multipliers for England (pence in the pound) from 1 April 2026 will be:

• Small businesses with a RV under £51,000:
  - Retail, hospitality and leisure businesses: 38.2p
  - Non-RHL businesses: 43.2p
• Other businesses with a RV under £500,000:
  - Retail, hospitality and leisure businesses: 43p
  - Non-RHL businesses: 48p
• High value businesses with a RV of £500,000 or more: 50.8p

Please tell us now if you think you are entitled to the RHL multiplier.

2026 Revaluation

Revaluation is a review of the RVs of business properties in England and Wales carried out by the Valuation Office Agency (VOA), normally every 3 years.

Business rates bills are calculated using the RV. You can obtain an estimate of what your business rates bill may be from 1 April 2026.

If you think the property details used in your 2026 valuation are wrong, you can tell the VOA by raising a check case against your 2023 valuation.

You will need to create an on-line Business Rates Valuation Account to do this.

Transitional relief

Transitional relief limits how much your bill can increase by when there is a revaluation.

If you are eligible, increases in your bill will be phased in gradually.

This relief is automatically awarded.

The limits the RV of the property can change are:

Small Property - RV up to £20,000
Medium Property- RV £20,001 to £100,000
Large Property - RV £100,001 +

The government is introducing a 1p supplement to the relevant tax rate for ratepayers who do not receive Transitional Relief or the Supporting Small Business Scheme to partially fund Transitional Relief. This will apply for one year from 1 April 2026.

2026 Supporting small business scheme

Bill increases for businesses losing some or part of their Small Business Rates Relief or Rural Rate Relief will be capped at the higher of £800 or the relevant transitional relief caps from 1 April 2026.

The 2026 SSB Relief scheme has been expanded to ratepayers losing their RHL relief. The government has also announced a one-year extension of the 2023 Supporting Small Business scheme from 1 April 2026.

This relief will be automatically awarded.

Small Business Rate Relief (SBRR) grace period

The government has extended the SBRR grace period from one to three years, meaning businesses will now remain eligible for SBRR on their first property for three years after expanding into a second property. This change applies to businesses that take on the additional properties on or after 27 November 2025.

Pubs and live music venues relief

The government announced on 27 January 2026 that in 2026/27 eligible pubs and live music venues will benefit from a 15% business rates relief on top of any transitional relief or supporting small business relief, and eligible business’ bills will then be frozen in real terms for 2 years.

The Valuation Office Agency has provided an online estimator tool to help you understand how the new relief reduces your 2026/27 business rates bill.

For more information about who is eligible for the relief please see the government guidance.

As this relief has only just been announced by the government, we are still confirming details of how this will be awarded. The details will be updated as soon as possible.

Last updated 03 February 2026