- At Autumn Budget 2025, the government announced the business rates multipliers that will be applicable for the April 2026 rating list following the recent revaluation.
- From 1 April 2026, permanently lower business rates will apply to retail, hospitality, and leisure properties with rateable values below £500,000, while most properties with rateable values of £500,000 and above will face increased business rates.
- To support ratepayers facing large bill increases at the revaluation, the government is introducing a re-designed Transitional Relief scheme - a package of support worth over £4.3 billion to be provided over the next three years.
- The government is also taking the next steps to reform business rates by publishing a call for evidence exploring how to tackle barriers to investment. In particular, the government is seeking views on how moving to a marginal tax rate, where successive bands are taxed at increasing rates, may be beneficial for investment.
- Timing: the above call for evidence closes on 18 February 2026. The new business rates multipliers and rateable values are applicable from 1 April 2026.
Resources (click to open)
- Budget 2025: Retail, Hospitality and Leisure Factsheet (HM Treasury, November 2025)
- Effects of the business rates retail, hospitality and leisure multipliers and high-value multiplier (HM Treasury, November 2025)
- Business Rates and Investment: Call for Evidence (HM Treasury, November 2025)
