Business rates explained
Business rates are a local tax paid by the occupiers of all non-domestic/business property, in the same way that Council Tax is a tax on domestic property.
You'll probably have to pay business rates on any property not used as a home. This includes shops, offices, pubs, warehouses and factories.
The Valuation Office Agency (VOA) sets the rateable value of business premises by using property details such as rental information. A property's rateable value is an assessment of the annual rent the property would rent for if it were available to let on the open market at a fixed valuation date.
From 1 April 2023, the rateable values are based on the valuation date of 1 April 2021.
From 1 April 2026, the rateable values are based on the valuation date of 1 April 2024
You can find out the current rateable value of any business premises by visiting the VOA website.
The valuation officer may change the rateable value if circumstances change. The ratepayer (and certain others who have an interest in the property) can appeal against the value shown in the list if they believe it is wrong.
You can appeal if you disagree with your property's business rates valuation.
We can only backdate any business rates rebate to the date from which any change to the list is to have effect.
How we calculate the rates
We work out the business rates bill by multiplying the rateable value of the property by the relevant multiplier.
There are 2 multipliers: the standard non-domestic rating multiplier and the small business non-domestic rating multiplier. The standard non-domestic rating multiplier is higher to pay for the Small Business Rate Relief Scheme.
The Government sets the multipliers for each financial year for the whole of England. The multipliers change each year in line with inflation and take account of the cost of Small Business Rate Relief.
From 1 April 2023 the small business multiplier applies to businesses with a rateable value of less than £51,000. As an example, the rates for a shop with a rateable value of 15,000 for 2023/24 would be 15,000 x 0.499 = £7,485.
For a shop with the rateable value of £52,000 we use the higher multiplier for example £52,000 x0.555 = £28,860
The current and historical multipliers can be found on the business rates pages of gov.uk.
From 1 April 2026, Business Rates is moving from two multipliers to five, reflecting business types and property value. These were confirmed in the Autumn Budget 2025.
The new Retail, Hospitality & Leisure (RHL) multipliers replace the former annual Retail, Hospitality & Leisure relief.
| Category | Rateable value | Multiplier |
|---|---|---|
| Small Business RHL | Less than £51,000 | 38.2p |
| Standard RHL | £51,000-£499,999 | 43p |
| Small Business (non-RHL) | Less than £51,000 | 43.2p |
| Standard (non-RHL) | £51,000-£499,999 | 48p |
| High Value Properties (all types) | Less than £500,000 | 50.8p |
See the full list of qualifying businesses for the RHL multiplier at Business Rates Multipliers: Business Rates Multipliers: Qualifying Retail, Hospitality or Leisure.
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.
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.
Transitional relief
Transitional relief limits how much your bill can change each year because of revaluation. Any changes to your bill are gradual if you're eligible.
You'll get transitional relief if your:
- property is in England
- rates go up or down by more than a certain amount
Current information on transitional relief is available from gov.uk.
Transitional Relief Supplement (TRS)
From 1 April 2026, the Government will apply a 1p supplement to the business rates multiplier.
This temporary measure will help fund the Transitional Relief scheme, which supports businesses facing significant increases in their bills following the 2026 revaluation.
The supplement will apply for one year only (2026/27) and will only be payable by ratepayers who do not receive either Transitional Relief (TR) or the Supporting Small Business (SSB) scheme.