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.
What is 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.
The five new multipliers will apply as follows:
- Small business RHL multiplier: Retail, Hospitality and Leisure (RHL) businesses with RV below £51,000.
- Small business non-RHL multiplier: Non-RHL businesses with RV below £51,000.
- Standard RHL multiplier: RHL businesses with RV between £51,000 and £499,999.
- Standard non-RHL multiplier: Non-RHL businesses with RV between £51,000 and £499,999.
- Large property multiplier: For all properties with RV of £500,000 and above.
Why these changes matter
The new system is designed to support local businesses and ensure fairer contributions from larger operations:
Supporting the high street
New Retail, Hospitality and Leisure (RHL) multipliers will replace the annual RHL relief, giving eligible businesses long-term certainty.
Fairer contributions
A higher multiplier for large properties means major distribution centres and online retailers will contribute proportionately.
Legislative safeguards
The Non-Domestic Rating (Multipliers and Private Schools) Bill will limit how much the new multipliers can differ from current rates:
- The large property multiplier can’t exceed the standard multiplier by more than 10p.
- The RHL multipliers can’t be more than 20p lower than the small business multiplier.
What is next?
The following steps will take place before the changes come into effect:
- The Autumn Budget on the 26 November 2025 confirmed the exact rates for each multiplier and further details will follow.
- The Government has defined eligibility for RHL properties through secondary legislation dated 16 October 2025.
- These changes will take effect alongside the 2026 revaluation of non-domestic properties.
We are currently reviewing our property database to determine which multiplier applies to each business and we will contact some ratepayers to request more information and evidence where needed.