Business rates changes for 2026
Revaluation
Every three years, the Government reviews the rental values of business properties in England and Wales. This process is called revaluation. It ensures businesses pay the correct amount of business rates based on current property values.
The next revaluation starts on 1 April 2026. A property’s rateable value may change. Some will go down, others will go up.
A rateable value is an estimate of the yearly rent for your property. For the 2026 revaluation, rental values from 1 April 2024 are used. These values help calculate your business rates bill.
The Council does not set your rateable value, this is a function of the Valuation Office Agency (VOA).
You can view your new rateable value online at find a property.
If you believe your rateable value is not correct, you can challenge your rateable value with the VOA online. You must keep paying your bill until the VOA make a decision. For more information regarding the revaluation, visit help with the 2026 business rates revaluation.
Introduction of new multipliers
From 1 April 2026, business rates is moving from two multipliers to five, reflecting business type and property value. These were confirmed in the Autumn Budget 2025.
The new Retail, Hospitality and Leisure (RHL) multipliers replace the former annual Retail, Hospitality and Leisure Relief.
| Category | Rateable value | Multiplier |
|---|---|---|
| Small business RHL | Less than £51,000 | 38.2p |
| Standard RHL | £51,000 to £499,999 | 43p |
| Small business (non-RHL) | Less than £51,000 | 43.2p |
| Standard (non-RHL) | £51,000 to £499,999 | 48p |
| High value properties (all types) | More than £500,000 | 50.8p |
See the full list of qualifying businesses for the RHL multiplier on the GOV.UK website.
Properties with rateable values (RVs) at or above £500,000 will pay a higher multiplier, designed to help fund the new, lower RHL multipliers and targeted support for the high street.
Transitional Relief scheme (2026-29)
The Transitional Relief scheme is designed to help businesses whose bills rise significantly because of changes in their RV following the 2026 revaluation.
Revaluation can cause some properties’ RVs to increase sharply. Transitional relief phases in the increase so that businesses are protected from sudden, unaffordable jumps in their rates bills.
How it works
The Government has set annual percentage caps on how much a bill can rise each year. These caps differ by property size: small, medium, or large.
The limits set for increases in business rates:
| Type of property | 2026-27 | 2027-28 | 2028-29 |
|---|---|---|---|
| Small property with a RV of £20,000 or less | 5% | 10% plus inflation | 25% plus inflation |
| Medium property with a RV between £20,001 and £100,000 (or equal to £100,000) | 15% | 25% plus inflation | 40% plus inflation |
| Large property with a RV of over £100,000 | 30% | 25% plus inflation | 25% plus inflation |
These caps mean your total bill before any other reliefs are calculated, cannot rise above the capped percentage for that year.
2026 Supporting Small Business (SSB) scheme
The Supporting Small Business (SSB) scheme for 2026-27 is designed to help ratepayers who experience a sharp increase in their business rates bill because they have lost Small Business Rates Relief (SBRR) or RHL Relief as a result of the 2026 revaluation.
When properties are revalued from 1 April 2026, some businesses that previously qualified for SBRR or the temporary RHL relief will lose that entitlement entirely. Without support, this could lead to a sudden and steep rise in their rates bill.
The SSB scheme limits how much their bill can increase each year, protecting them from a “cliff edge” jump in costs.
How it works
Eligible businesses will have annual increases capped, ensuring their new bill rises gradually instead of immediately reflecting the full post revaluation amount.
The scheme operates alongside the new multipliers and transitional arrangements introduced from April 2026.
2023 Supporting Small Business (SBB) scheme
The Government is introducing a one-year extension of the 2023 Supporting Small Business scheme in 2026-27.
Extending small business rate relief
The Government has introduced additional support to small businesses.
For those businesses that take on an additional property before 27 November 2025, which would have normally meant the loss of small business rate relief, they will be allowed to keep that relief for a period of 12 months.
For those businesses taking on an additional property on or after 27 November 2025, which would have normally meant the loss of small business rate relief, they will be allowed to keep that relief for a period of 36 months.
Transitional Relief supplement
A 1p supplement to the relevant multiplier will be included in all bills, but will only be paid by those not in receipt of Transitional Relief or Supporting Small Business Relief. This is to partially fund TR and will apply for one year from 1 April 2026.
Pubs and live music venues relief
In 2026-27, all pubs and live music venues will benefit from a 15% business rates relief, on top of any transitional relief or supporting small business relief you are eligible for.