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 Non-Domestic Rating multipliers will now be as follows:
1. Small business RHL multiplier: Retail, Hospitality and Leisure (RHL) businesses with RV below £51,000: 38.2p
2. Small business non-RHL multiplier: Non-RHL businesses with RV below £51,000: 43.2p
3. Standard RHL multiplier: RHL businesses with RV between £51,000 and £499,999: 43.0p
4. Standard non-RHL multiplier: Non-RHL businesses with RV between £51,000 and £499,999: 48.0p
5. Large property multiplier: For all properties with RV of £500,000 and above: 50.8p
Transitional Relief Scheme for 2026/27
To support ratepayers facing large bill increases upon revaluation, the government is introducing a redesigned Transitional Relief Scheme. The Transitional Relief caps will be as follows for properties with a rateable value of:
- Up to £20,000 (£28,000 in London): in 2026-27 - 5%, in 2027-28 - 10% (plus inflation), in 2028-29 - 25% (plus inflation).
- £20,001 (£28,001 in London) to £100,000: in 2026-27 - 15%, in 2027-28 - 25% (plus inflation), in 2028-29 - 40% (plus inflation).
- Over £100,000: in 2026-27 - 30%, in 2027-28 - 25% (plus inflation), in 2028-29 - 25% (plus inflation).
Business Rates Transitional Relief Supplement
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 (SSB Relief)
Bill increases for businesses losing some or all of their Small Business Rate 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 Supporting Small Business Scheme will be expanded to include businesses who were eligible for RHL relief.
2023 Supporting Small Business Scheme (SSB Relief)
The government is introducing a one-year extension of the 2023 Supporting Small Business scheme in 2026-27.
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.
Electric Vehicle (EV) charge points
A 10-year 100% Business Rates Relief for eligible EV charge points and EV-only forecourts.
Avoidance
The government will introduce new powers to close in on promoters of marketed tax avoidance. These will be legislated for in Finance Bill 2025-26. The government will publish a consultation on further measures to tackle promoters in early 2026.