27th November 2025 - James Burkitt

The key change announced in yesterday's Budget is the replacement of Retail, Hospitality & Leisure (RHL) Relief, which reduced business rates bills for eligible properties by 40% in 2025/26, with five new multipliers for non-domestic properties in England.

New Multipliers (from 1 April 2026):

• Small Business RHL (RV < £51,000): 38.20p
• Standard RHL (RV £51,000–£499,999): 43.00p
• Small Business non-RHL (RV < £51,000): 43.20p
• Standard non-RHL (RV £51,000–£499,999): 48.00p
• Large Property (RV ≥ £500,000): 50.80p

From 1 April 2026, permanent lower multipliers will apply to RHL properties with a Rateable Value below £500,000. Properties with a Rateable Value of £500,000 or above, including large retailers, supermarkets and major distribution units, will be charged the new higher multiplier of 50.8p in the £.

Retail, Hospitality and Leisure

The new, lower RHL multipliers for 2026/27 will follow similar eligibility criteria to those used in 2025/26 but will now be governed by legislation. Whilst the higher multiplier will impact those properties with Rateable Values of £500,000 or higher, the removal of the £110,000 annual cash cap will be welcome news for clients with larger retail portfolios, with more properties potentially benefitting from the lower RHL multipliers. 

Other Key Announcements

While the new multipliers represent the most significant change, several measures have been introduced to help cushion the impact of the transition from the 2023 Rating List to the 2026 Rating List, including:

• A transitional relief scheme to cap increases in business rates bills.
• A supporting small business scheme to cap increases for those losing some or all Small Business Rates Relief. The supporting small business scheme will also apply to ratepayers losing RHL Relief.

Draft 2026 Rating List

Alongside these measures, the Valuation Office Agency has released Draft 2026 Rateable Values, reflecting market conditions as at 1 April 2024.

These new Rateable Values come into force on 1 April 2026 and will form a major part of determining liabilities for 2026/27. Whilst we are only beginning to review our clients’ properties, early indications suggest that most have seen at least a slight increase in their Rateable Values.

Conclusion

The measures announced have not taken the industry by surprise. The clear intention is for larger businesses, such as major retailers, supermarkets and distribution warehouses, to take on a greater share of the overall rates burden.

If you require advice on how these changes may impact your business, please do not hesitate to contact us.