There’s no doubt that Business Rates are becoming increasingly complicated, as evidenced in the Budget and publication of the Draft List on Wednesday.
Head of Rating, Debbie Warwick previously outlined some of the changes we knew in advance of the Budget, including the introduction of five different Multipliers, (comprising the RHL Multiplier and Large Businesses Multiplier) as well as Duty to Notify. Meanwhile, Stephen White, Partner, previously spoke with Estates Gazette at their Office Evolution conference on his predictions on the impact of business rates in the Offices sector.
There was, however, many unknowns, and now that the Autumn Budget and Draft List have been published, how exactly are businesses going to be impacted and what do we still not know?
The Highlights:
Lower Retail, Hospitality and Leisure (RHL) business rates multipliers,
The budget announced lower multipliers which could benefit the 750,000 RHL properties whilst they are occupied, notably high street shops and pubs. The RHL multipliers will track 5p below their national equivalents for the whole list.
As previously announced, to fund this, the government is introducing a higher-value multiplier for properties with Rateable Values of £500,000 and above, representing around 1% of properties.
The table below summarises the five multipliers we will see from 1st April 2026.
| Multiplier | Criteria | 2026 Multiplier (% relative to relevant national multiplier) | Actual 2026 Multiplier including 0.01 supplement |
| 1) Small Business Multiplier | RV below £51,000 | 0.432 | 0.442 |
| 2) Small RHL Business Multiplier | Occupied RHL, RV below £51,000 | 0.382 (-12%) | 0.392 |
| 3) Standard Multiplier | RV between £51,000 and £499,999 | 0.480 | 0.490 |
| 4) Standard RHL Multiplier | Occupied RHL, RV between £51,000 and £499,999 | 0.430 (-10%) | 0.440 |
| 5) Large Multiplier | RV above £500,000 | 0.508 (+6%) | 0.518 |
Note there will be a 0.01 (1p) supplement (to pay for the transitional relief) for everyone not receiving either transitional or Supporting Small Business (SSB) relief in the 2026/27 year only. The Crossrail and City supplements will also be added on top of these figures.
According to James Skelly, Rating Compliance and Audit Lead
“The Large multiplier uplift is approximately where I predicted previously, however I am surprised by a flat 5p reduction to both small and standard RHL multipliers. This means some chains of larger RHL properties are huge winners and smaller retail properties are going to see their rates support drop from 40% to 12%. Since these multipliers are balanced with each other, I expect the Government will have to make some tricky justifications about who it has prioritised support for, and who has had to pay for it, in the coming weeks.”
2026 Supporting Small Business Scheme (SSB relief)
The Government has announced caps to the bill increases for those businesses who will be losing some or all of their SSB relief, rural rate relief or retail relief. The annual increase will be capped at either £800 or the relevant transitional relief limits, whichever is higher. Hereditaments who are still within the 2023 SSB transition will also gain an extra year for 2026 (it will stop thereafter though). This will be provided as discretionary relief so it will be up to Billing Authorities to publish and enact their own scheme following the government guidance.
Transitional relief
Draft details of a reworked £3.2 billion Transitional Relief Scheme for 2026 to 2028 has been released. Transitional relief was introduced in 2023 as a government scheme that limits how much your business rates bill can change each year as a result of an increase to your rateable valuable at the time of the revaluation. Liability increases should be limited to the caps in the table below. The new scheme is branded as ‘multiplier inclusive’ so the caps will compare a ratepayer’s base liability (pre relief) in 2025 with the notional charge created by the new multipliers.
| Upwards Caps | 26-27 | 27-28 | 28-29 | |
| Small RV (<£20,000*) | 5% | 10% | 25% | |
| Medium RV (£20,000* to £100,000) | 15% | 25% | 40% | |
| Large RV (>£100,000) | 30% | 25% | 25% |
*£28,000 in Greater London
Publication of the 2026 Draft List
The Draft List for 2026 has now been published and is available to view on the VOA website. Whilst we are gathering insights and budgeting advice on behalf of our clients, a broad trend is immediately apparent. The total Rateable Value across England and Wales has risen from around £70.7 billion in the 2023 list to £84.4 billion for 2026. This is reflected in substantial average RV increases across almost every sector.
When initially comparing the live 2023 Rating List and draft 2026 Lists within England, VOA statistics indicate notable Rateable Value percentage increases, for example;
- Offices 14%
- Industrials 20%
- Retail 9%
‘’Whilst the lower multipliers and transitional relief scheme announced in the Autumn Budget are welcome, due to the average overall increase in Rateable Values expected to come in under the 2026 Rating List, many ratepayers will likely see a liability increase on 1st April 2026.’’ Stephen White
Other Notable Updates
- 100% relief for Eligible Electric Vehicle Charging Points and Electric Vehicle only forecourts (EVCP relief) – ten-year 100% business rates relief if they are separately assessed.
- Extending the Small Business Rates Relief (SBRR) grace-period from one to three years. No other adjustments to the existing scheme have been announced.
- Call for Evidence: Business Rates and Investment – a Call for Evidence has been published on the role business rates play in investment and the impact of the Receipts and Expenditure valuation method.
- Business Rates retention scheme for Local Authority funding is being overhauled for 2026 and we can expect an expansion of the 100% retention pilot scheme.
Whilst these announcements have been made at the Budget, we are still awaiting formal publication of many of the regulations and legislation that will ultimately decide the level of liability ratepayers are due to face at the start of the next financial year.
In summary, the Autumn Budget and Draft 2026 Rating List introduce significant changes that will impact businesses differently. While some relief measures and new lower multipliers are welcome, rising Rateable Values mean many ratepayers could face higher liabilities from the start of the new list in April next year. With regulations still to be finalised and appeal deadlines approaching, it’s crucial to review your position now. Our Rating experts are closely monitoring developments and can help you navigate these complexities to ensure you’re prepared.
Visit our Business Rates Services page to see how we can help.
