Important changes to business rates from 1 April 2026
When we calculate your Business Rates bill, we take three factors into consideration:
- the Rateable Value (RV) for your premises
- the multiplier for your business
- any reliefs your business is entitled to
The RV is the estimated annual rent your property could have been let for on a set date. (This is not the same as the rent you currently pay.) This is set by the Valuation Office Agency (VOA), and changes every three years.
The multiplier is the tax rate that applies to your business. It is set by the government and changes each year.
The reliefs are any discounts your business may be able to claim. These are also set by the government.
In the Autumn 2025 Budget, the government announced changes to all three of these factors. These will all affect how we calculate your future bills.
Rateable Value (RV) changes
Every three years, the Valuation Office Agency (VOA) updates the RVs. This is to reflect changes in the market and is known as a revaluation. The next revaluation comes into effect on 1 April 2026, and the set date for the estimate rent value is 1 April 2024.
After revaluation, your bill may increase, decrease or stay the same. A rise in your rateable value does not necessarily mean your bill will increase by a similar amount.
Multiplier changes
In the Autumn 2025 Budget, the government created two new multipliers. These are lower than previous multipliers and apply to retail, hospitality and leisure businesses with properties with RVs below £500,000.
We will be responsible for deciding which businesses are eligible for these new multipliers, in line with government guidance.
You can find more information about the new Business Rates multipliers for RHL.
The rates for the new multipliers are:
Small business (RHL)
- Category
- Small business (RHL)
- Rateable Value
- Below £51,000
- Multiplier
- 38.2p
Small business (non-RHL)
- Category
- Small business (non-RHL)
- Rateable Value
- Below £51,000
- Multiplier
- 43.2p
Standard (RHL)
- Category
- Standard (RHL)
- Rateable Value
- £51,000 to £499,999
- Multiplier
- 43.0p
Standard (non-RHL)
- Category
- Standard (non-RHL)
- Rateable Value
- £51,000 to £499,999
- Multiplier
- 48.0p
Large (all properties)
- Category
- Large (all properties)
- Rateable Value
- £500,000 and above
- Multiplier
- 50.8p
| Category | Rateable Value | Multiplier |
|---|---|---|
| Small business (RHL) | Below £51,000 | 38.2p |
| Small business (non-RHL) | Below £51,000 | 43.2p |
| Standard (RHL) | £51,000 to £499,999 | 43.0p |
| Standard (non-RHL) | £51,000 to £499,999 | 48.0p |
| Large (all properties) | £500,000 and above | 50.8p |
The multipliers are shown in pence per pound of rateable value (RV).
Transitional Relief
To support businesses facing large bill increases after revaluation, the government is introducing a redesigned Transitional Relief scheme worth £3.2 billion.
You do not need to apply for Transitional Relief, as we will apply it to your bill automatically.
Transitional Relief supplement
If your business does not qualify for Transitional Relief or the Supporting Small Business scheme, you will have to pay a 1p supplement on your tax rate.
We will apply this to your bill from 1 April 2026 for one year. The government is applying it to cover some of the cost of the Transitonal Relief scheme.
Supporting Small Business (SSB) scheme 2026
This scheme helps to limit how much your Business Rates bill will increase following changes to other schemes.
It will apply if your business is losing discounts for any of the following reliefs:
- small business rates relief
- rural rate relief
- Retail, Hospitality and Leisure (RHL) relief
The SSB scheme will mean your bill will only increase by a maximum of £800, or the relevant transitional relief cap from 1 April 2026 (whichever benefits you the most).
We will apply this support to your bill first, before calculating changes in other reliefs and local supplements.
You do not need to apply for the SSB scheme, as we will apply any relief to your bill automatically.
Small Business Rates Relief
The government is extending the grace period for Small Business Rates Relief (SBRR) from one to three years.
Businesses will now keep their Small Business Rates Relief on their first property for three years after they take on a second property, instead of just one year.
Electric Vehicle Charging Point (EVCP) relief
You can claim 100% relief for ten years if your business installs:
- charging points for eligible electric vehicles, or
- builds forecourts that only service electric vehicle
This relief will be assessed separately by the Valuation Office Agency (VOA). The government will set up regulations about this in scheme due course, but we do not have any further details at present.
As your local council, we are responsible for anything to do with your Business Rates bill, including adding any relief you might be eligible for.
You can visit our Apply for Business Rates relief page for the latest information about this.
The VOA is responsible for the valuation of your property. You should contact the VOA with any questions about your property’s rateable value.
What to do if you think your valuation is incorrect
If you think your valuation is wrong or want to make any changes to your property details (such as floor area sizes and parking) you will need to create a Business Rates valuation account (if you don't already have one).
You can’t challenge your 2026 valuation until 1 April 2026. However, you can update the details the VOA has about your property, or tell them if you think your current valuation is wrong.
Any changes made to your current valuation could result in your rateable value going up or down. This may also affect your future valuation from 1 April 2026.
You have until 31 March 2026 to request any changes to your current rateable value. After that, you will only be able to request changes to your new valuation.