Changes to business rates from 1 April 2026 DRAFT

Business rates are the way that businesses help to contribute towards local services. Find out more here.

Revaluation

Every three years, the Valuation Office Agency (VOA) reviews and updates the rateable values of all non-domestic properties. The next revaluation will come into effect on 1 April 2026.

You can find your current and new rateable value, and get an estimate what your new Business Rates might be by visiting GOV.UK.

From 1 April 2026, there will be five business rates multipliers, replacing the old two-tier system.  These depend on your property’s use and rateable value.

New Retail, Hospitality and Leisure (RHL) multipliers will be set 5p below the relevant national multipliers for qualifying properties with rateable values below £500k. To fund this, a higher multiplier 2.8p above the national standard multiplier will apply to properties with rateable values of £500,000 or more.

Multipliers for 2026/27

Property type Rateable Value (RV) Multiplier
Small business RHL Retail, hospitality and leisure (RV below £51,000) 38.2p
Small business non-RHL Non-RHL businesses (RV below £51,000) 43.2p
Standard RHL RHL businesses (RV value £51,000 - £499,999) 43p
Standard non-RHL Non-RHL businesses (RV £51,000 - £499,999) 48p
Large property All properties (RV of £500,000 and above) 50.8p

The business rates team are completing checks to decide which multiplier applies to each business. We may contact you for more information about your business.

For further information please visit GOV.UK

Transitional relief scheme

If your bill increases from 1st April 2026 because of revaluation, the increase will be limited to a certain percentage. The amount of this percentage will depend on your rateable value.

The transitional relief caps will be as follows:

Rateable value (RV) 2026 to 2027 2027 to 2028 2028 to 2029
Small RV (Up to £20,000) 5% 10% 25%
Medium RV (£20,001 to £100,000) 15% 25% 40%
Large RV (Over £100,000) 30% 25% 25%

*Inflation will be added to the percentages in the above table.

A 1p Transitional Relief Supplement will be added to the relevant business rates multiplier (not tax rate) for ratepayers who neither receive Transitional Relief or are not eligible for Supporting Small Business Scheme to help fund Transitional Relief. This will apply for one year from 1 April 2026.

You do not need to contact the Council to request Transitional Relief. It will be applied automatically and shown on the front of your bill.

The Government is providing extra support for businesses affected by the 2026 revaluation, including those losing Small Business Rate Relief, Rural Rate Relief, and Retail, Hospitality and Leisure Relief.

  • Extra help for small businesses losing relief (Supporting Small Business Scheme)
  • New 10-year relief for electric vehicle charging points
  • Grace period for small businesses expanding into a second property extended to 3 years

You can find out more details about the changes, including how they might affect your bill, on GOV.UK.

Further guidance is also available on Help with the 2026 business rates revaluation.

Check if you qualify for a relief or exemption here.
 

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