What are the new changes as of the November 2025 Budget?
From 1 April 2026 all business properties will receive new rateable values following the government’s latest three-yearly revaluation, which updates values to reflect current rental market conditions as of April 2024. This means a property’s rateable value may rise or fall depending on how its local market has changed.
The 40% Retail, Hospitality & Leisure (RHL) Business Rates Relief will end on 31st March 2026. This relief currently reduces business-rates bills for many shops, cafés, pubs, gyms, restaurants, salons, and leisure venues.
Instead of the temporary 40% discount, the government is introducing lower, sector-specific multipliers, meaning that even where rateable values increase, these businesses should benefit from a reduced pence-per-pound rate compared with many other sectors.
This blog explains the key changes, provides the updated multipliers, and gives examples to help small business owners understand what their bills may be from April 2026.
You can also use our 2026 business rates calculator to check your new business rates bill will look like.
1. Changes to RHL Relief
- 2025/26: Eligible RHL businesses received 40% off their business rates, capped at £110,000 per year.
- From 1 April 2026: The 40% relief ends.
- Eligible RHL properties will instead use permanent lower multipliers:
- Small RHL (<£51,000 RV): 38.2p
- Standard RHL (<£500,000 RV): 43.0p
This replaces the temporary relief with a multiplier-based calculation, which will apply to bills for all current eligible properties.
2. Small Business Rates Relief (SBRR)
Small Business Rates Relief will continue for eligible properties below the thresholds. Businesses currently receiving SBRR will see relief applied as usual from April 2026.
Grace period for expansion: If a business opens a second property, it will continue to receive SBRR on its original property for three years, instead of the previous one-year period. After this three-year period, the usual SBRR eligibility rules apply.
3. Business Rates Cheat Sheet (Old vs New Multipliers)
| Property Type | Rateable Value | Previous Multiplier (2025/26) | New Multiplier (2026/27) |
| RHL Small Business | < £51,000 | 49.9p | 38.2p |
| RHL Standard | £51,000–£499,999 | 55.5p | 43.0p |
| Non-RHL Small Business | < £51,000 | 49.9p | 43.2p |
| Non-RHL Standard | £51,000–£499,999 | 55.5p | 48.0p |
| High-Value Properties | £500,000+ | 55.5p | 50.8p |
4. How to Calculate Your 2026 Business Rates Bill
Formula:
Business Rates Bill = Rateable Value × Multiplier
Example 1 – Small RHL Shop:
- Rateable value: £45,000
- Multiplier (2026/27): 38.2p
- Bill: £45,000 × 0.382 = £17,190
Example 2 – Medium RHL Retail Property:
- Rateable value: £120,000
- Multiplier (2026/27): 43.0p
- Bill: £120,000 × 0.43 = £51,600
You can also use the updated online calculator to estimate your bill.
5. Who Is Affected
- Eligible properties: High-street retail, hospitality, leisure venues, and other small to medium properties under £500,000 RV.
- High-value properties: Large warehouses or commercial units (>£500,000 RV) use the new high-value multiplier (50.8p).
6. Steps for Small Business Owners
- Check your rateable value (RV) and update if needed
- Identify your property type (RHL vs non-RHL) to know your multiplier.
- Estimate your 2026 bill using the new multipliers or the online calculator.
- Review SBRR eligibility if your property qualifies as a small business.
7. FAQs
Q: Will my business still get the 40% RHL relief in 2026?
A: No. The 40% RHL relief ends on 31 March 2026 and is replaced by permanently lower multipliers.
Q: Does SBRR continue after 1 April 2026?
A: Yes. Small businesses below the thresholds remain eligible. If a business opens a second property, it will continue to receive SBRR on the original property for three years, instead of one.
Q: How do I calculate my new business rates bill?
A: Multiply your rateable value by the correct multiplier from the 2026/27 table, or use the updated online calculator.
Q: Who benefits from the new multipliers?
A: Small to medium RHL businesses benefit from lower multipliers. Larger or high-value properties see higher multipliers.
Q: Are these changes for the whole UK?
A: No, these changes apply only to England. Scotland, Wales, and Northern Ireland have separate rules.
8. Conclusion
From April 2026, the 40% RHL relief ends. Eligible properties will use permanent lower multipliers, and SBRR continues for small businesses. Business owners can calculate their bills using the updated multipliers or the online calculator.