Business Rate changes following the budget announcement

Following the recent budget announcement, we now have the details of the proposed government changes to business rates for 2026-27.

We are currently preparing and implementing these changes as part of our annual billing process for the next financial year. In the meantime, you can access the Valuation Office Agency (VOA) website, which currently holds information regarding the new multipliers for 2026-27. There are useful links at the bottom of this page with more details.

Key points for businesses to know

1. Revaluation from April 2026 will mean:

  • all non-domestic properties will have their rateable values updated to reflect market conditions as of 1 April 2024.
  • your new rateable value will determine your business rates bill from April 2026 to March 2029.

2. New business rates multipliers

Multiplier 2025-26 2026-27 Scope
Small Business RHL Multiplier - 38.2p RHL hereditaments with RVs under £51,000
Standard RHL Multiplier - 43p RHL hereditaments with RVs between £51,000 and £499,999
National Small Business Multiplier 49.9p 43.2p Non-RHL hereditaments with RVs under £51,000
National Standard Multiplier 55.5p 48p Non-RHL hereditaments with RVs between £51,000 and £499,999
High-Value Multiplier - 50.8p All hereditaments with RVs of £500,000 or above
New business rates multipliers

3.  Permanent lower rates for retail, hospitality and leisure

  • Properties with rateable values under £500,000 will benefit from lower multipliers, providing long-term certainty for these sectors.

4.  High-value properties

  • Properties with RVs of £500,000 or more will be subject to a higher multiplier, set at 50.8p.

5.  Transitional relief scheme

  • A £3.2 billion support package will cap annual bill increases for businesses facing significant changes after revaluation.
  • Caps will vary by property size (e.g., 5% for RVs up to £20,000 in 2026-27).

6.  Supporting small business schemes

  • Following the recent budget announcement, we have received details of the proposed government changes to business rates for 2026-27. We are currently preparing and implementing these changes as part of our annual billing process for the next financial year.
  • In the meantime, you can access the Valuation Office Agency (VOA) website, which currently holds information regarding the new multipliers for 2026-27. Please see the link below for more details.

7.  Check your rateable value

  • Draft rateable values are now available via the Valuation Office Agency's Business Rates Valuation Service. You can compare your property's valuation and estimate your future bill.

Business Rates Relief for Pubs and Live Music Venues - 2026/27

The government has announced a new business rates relief for occupied pubs and live music venues. This relief will be applied as part of the annual billing process for the 2026/27 financial year, alongside other mandatory updates such as the revised business rates multipliers and the latest revaluation.

Eligibility - pubs

To qualify, a property must meet all of the following characteristics:

  • be open to the general public
  • have free entry (except when occasional entertainment is provided)
  • drinking is allowed without food being required
  • drinks can be purchased at a bar

The following are not counted as pubs for the purpose of this relief:

  • restaurants, cafés, nightclubs, snack bars, hotels, guesthouses, boarding houses, sporting venues, festival sites, theatres, cinemas, museums, exhibition halls and casinos.

Local authorities may use discretion where eligibility is unclear, considering whether the premises meet the natural meaning of a pub (for example, being brewery‑owned or operated).

Eligibility - live music venues

To qualify, a property must be:

  • wholly or mainly used for live music performance for an audience

Other uses must be incidental/ancillary (e.g., food or drink for the audience) or infrequent (e.g., polling station or occasional community events)

Properties mainly used as nightclubs or theatres do not qualify.

Where needed, further clarification can be drawn from Chapter 16 of the statutory guidance issued under section 182 of the Licensing Act 2003.

What happens next

You do not need to apply for this relief.

We will assess eligibility and apply the relief automatically when issuing annual business rates bills for 2026/27, factoring it in alongside all other national business rates changes.

Useful links