Details of the changes to business rate multipliers in April 2026, why the changes matter, the legislative safeguards, and how to prepare.
From April 2026, the UK Government will introduce five new business rates multipliers.
These changes are part of wider reforms to create a fairer, more modern system that supports investment and protects the high street.
What's changing
The current system uses two multipliers based on property rateable value:
- 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
More details on the current multipliers can be found at How business rates are calculated and how to appeal.
From April 2026, the system will expand to five multipliers. These will reflect both business type and property value.
New multipliers
The five new multipliers will apply as follows:
- Small business RHL multiplier: Retail, hospitality and leisure (RHL) businesses with RV below £51,000
- Small business non-RHL multiplier: Non-RHL businesses with RV below £51,000
- Standard RHL multiplier: RHL businesses with RV between £51,000 and £499,999
- Standard non-RHL multiplier: Non-RHL businesses with RV between £51,000 and £499,999
- High value multiplier: For all properties with RV of £500,000 and above
2026 to 2027 Multipliers
These multipliers are:
- Small Business RHL: 38.2p
- Small Business Non-Domestic: 43.2p
- Standard RHL: 43.0p
- Standard Non-Domestic: 48.0p
- High-Value Non-Domestic: 50.8p
Why 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 High Value properties ensures major distribution centres and online retailers contribute proportionately.
Qualification Criteria
Visit Business Rates Multipliers: Qualifying Retail, Hospitality or Leisure (GOV.UK) for the governments guidance for qualifying Retail Hospitality and Leisure criteria.
How we're preparing
We're reviewing our property database to determine which multiplier applies to each business. We'll contact some ratepayers to request more information where needed.
How you can prepare
You can take the following steps to get ready for the new system:
- Check your current rateable value via the Valuation Office Agency
- Review your eligibility for RHL classification
- Subscribe to the business newsletter and GOV.UK to stay updated