Measure
The government has today announced the business rates multipliers that will be applicable for the April 2026 rating list following the recent revaluation. As had been trailed before the Budget the multipliers have been adapted with the aim of supporting the retail, hospitality and leisure sectors, which have recently been benefitting from alternative forms of support (reliefs), as it was felt that a more consistent and measured approach needed to be taken across the property sector.
In order to fund this sustainably the government is introducing a higher rate on the most valuable properties – those with rateable values of £500,000 and above.
Many businesses in the retail, hospitality and leisure sector will benefit from lower multipliers. In contrast, those in large offices or large industrial and distribution logistics warehouses will be subject to the higher multiplier because of their higher rateable value (£500,000 or above) and the nature of the property. However, following the 2026 revaluation, both the small business and standard multipliers will fall, meaning that even properties on the higher multiplier will pay a lower tax rate than they do now on the standard multiplier.
Transitional relief programmes should help make any changes in business rates liabilities more manageable for occupiers if they have seen their rateable values increase as a result of the 2026 revaluation
This will come into effect from 1 April 2026.
This will be seen by many as a sensible approach alongside the benefit of regular revaluations. The government has set out its stated desire of helping and protecting the high street, which has seen significant challenges over the last 5 to 10 years. This move, along with other recent announcements (e.g. the banning of the upward only rent review) is aligned with that.