Changes to business rates from April 2026
There are a number of business rate changes that will come into effect from 1 April 2026.
This is due to the Autumn budget set in November 2025 which set out measures to support businesses in England.
Revaluation
Every 3 years the Valuation Office Agency (VOA) update the rateable values of commercial properties in England and Wales. This process is called revaluation and is aimed at making sure that business rates reflect changes in the property market.
The 2026 draft rating list has now been published by the Valuation Office Agency.
This may result in your bill going up, down or staying the same depending on your property's new valuation.
Retail, Hospitality and Leisure multiplier changes
Each tax year, you can estimate what your business rates will be based on your property's 'rateable value' and a 'multiplier'. You can find out more about how to calculate your business rates on GOV.UK.
From 1 April 2026, following the Non-Domestic Rating (Multipliers and Private Schools) Act 2025, the way we calculate your business rates bill will change.
Instead of you being allocated 1 of 2 multipliers, there will be 5 multipliers.
You will be allocated 1 of the 5 multipliers depending on the:
- rateable value of your property
- use of your property
What the multiplier changes mean for you
The new system provides permanent support for Retail, Hospitality and Leisure properties that previously had to apply for relief schemes which were granted every year.
The system increases contributions for larger businesses who occupy properties with the highest rateable values.
| Type of business | Multiplier for 2025/26 (if applicable) | Multiplier for 2026/27 tax year |
|---|---|---|
| Small Retail, Hospitality and Leisure businesss where the rateable value of the property is under £51,000 | 38.2p | |
| Small non-domestic rating where the rateable value of the property is under £51,000 | 49.9p | 43.2p |
| Standard Retail, Hospitality and Leisure business where the rateable value of the property is between £51,000 and £499,999 | 43p | |
| Standard non-domestic rating where the rateable value of the property is between £51,000 and 499,999 | 55.5p | 48p |
| High-value non-domestic rating where the rateable value of the property is £500,000 or above | 50.8p |
How we are preparing
We are currently reviewing all properties within our area to determine which multiplier applies to each property. If we need further information to help decide this, we will contact you directly.
Transitional relief
If your bill goes up due to the 2026 revaluation, transitional relief will limit the increase on your bill. It's calculated automatically.
The limit set depends on the rateable value of the property.
| Type of property | 2026/27 | 2027/28 | 2028/29 |
|---|---|---|---|
| Small property with a rateable value of £20,000 or less | 5% | 10% plus inflation | 25% plus inflation |
| Medium property with a rateable value between £20,000 and £100,000 (or equal to £100,000) | 15% | 25% plus inflation | 40% plus inflation |
| Large property with a rateable value of over £100,000 | 30% | 25% plus inflation | 25% plus inflation |
Transitional relief supplement
A 1p supplement to the relevant tax rate for ratepayers who do not receive either transitional relief or supporting small business scheme.
This is to partially fund the Transitional Relief and will apply for 1 year from 1 April 2026.
Supporting small business
From April 2026, you can get supporting small business relief if both of the following apply:
- your business property's bill will increase when the next revaluation happens on 1 April 2026
- you've lost some or all of your small business rate relief, rural rate relief, retail hospitality and leisure relief or 2023 supporting small business relief
If eligible, your bills will go up by no more than £800 or the relevant Transitional Relief percentage cap from 1 April 2026 (whichever is greater).
| Type of property | 2026/27 |
|---|---|
| Small property with a rateable value of £20,000 or less | 5% |
| Medium property with a rateable value between £20,000 and £100,000 (or equal to £100,000) | 15% |
| Large property with a rateable value of over £100,000 | 30% |
Businesses who are still receiving Supporting Small Business Relief because of the 2023 revaluation will have their relief extended for 12 months.
Extending the small business rate relief grace-period
Businesses will now keep their small business rate relief on their first property for 3 years after they take on a second property, instead of just 1 year.
Relief for Electric Vehicle Charging Points (EVCPs)
There will be a 10 year 100% relief for eligible properties that have installed electric vehicle charging points and electric vehicle only forecourts.
The regulations for this will be published soon.