From 1st April 2026, the Government will introduce three new business rates multipliers. This means that there will be a total of five multipliers being used to calculate rates bills.
These changes are part of wider reforms. They aim to create a fairer, more modern system that supports investment and protects the high street.
To prepare for this, we are reviewing our property database to determine which multiplier should apply to each business. We will be contacting ratepayers and requesting information to understand the business purpose your business property is being used for. This is because we cannot use existing special category codes on the rating list.
New multipliers from 1st April 2026
At present, the current system uses two multipliers based on the rateable value (RV) for your property:
- Small business multiplier: for properties with a rateable value (RV) below £51,000.
- Standard multiplier: for properties with an RV of £51,000 and above.
The new five multiplier system will apply as follows:
- Small business RHL multiplier:
For qualifying Retail, Hospitality and Leisure (RHL) businesses with an RV below £51,000.
- Small business non-RHL multiplier:
For non-RHL businesses with an RV below £51,000.
- Standard RHL multiplier:
For qualifying RHL businesses with an RV between £51,000 and £499,999.
- Standard non-RHL multiplier:
For non-RHL businesses with an RV between £51,000 and £499,999.
- Large value multiplier:
For all properties with an RV of £500,000 and above.
Why do these changes matter?
The new system is designed to support local businesses and ensure fairer contributions from larger operations.
- Support for the high street: The new RHL multipliers will replace the annual RHL relief, giving eligible businesses long-term certainty.
- Fairer contributions: A higher multiplier for large properties ensures major distribution centres and online retailers contribute more fairly.
What will the multipliers be?
The Government will announce the exact rates for the multipliers at the Autumn 2025 Budget.
The Non-Domestic Rating (Multipliers and Private Schools) Bill will limit how much the new multipliers can differ from current rates:
- The large property multiplier can’t exceed the standard multiplier by more than 10p.
- The RHL multipliers can’t be more than 20p lower than the small business multiplier.
Do I qualify for one of the two new lower RHL multipliers?
The government will define who is eligible as an RHL property around the Autumn Budget 2025. This will be done through secondary legislation.
The qualifying criteria is expected to align closely with current RHL relief rules.
These changes will take effect alongside the 2026 national revaluation of non-domestic properties.