The Chancellor of the Exchequer, The Rt Hon Rachel Reeves MP, today announced changes to the business rates multipliers for England and Wales. In the Chancellor’s autumn statement on 26 November 2025, a new framework for supporting sectors under particular pressure was outlined, with a permanent, lower business rates multiplier introduced for retail, hospitality and leisure businesses.
The new draft ratings list, setting out rateable values for all businesses from 1 April 2026, was also published on 26 November. This is known as the 2026 Revaluation. The second draft list will be published on 12 January 2026.
A new multiplier (pence in the pound) framework will be created, moving from the two tiers (small and standard) to five tiers for 2026/27, as follows:
- Small business RHL (retail, leisure and hospitality) multiplier, RHL properties only, RV below £51,000: 38.2 pence
- Small business multiplier, non-RHL properties, RV below £51,000: 43.2 pence
- Standard RHL multiplier, RHL properties only, RV £51,000 – £499,999: 43 pence
- Standard multiplier, non-RHL properties, RV £51,000 – £499,999: 48 pence
- High-value multiplier, all properties, RV £500,000 and above: 50.8 pence
This variation in the multiplier reflects the growing financial pressures faced by smaller businesses and, in particular, those operating in the retail and hospitality sector. These industries have weathered a prolonged period of rising costs, from increases in the National Living Wage and higher employer pension contributions to steep energy prices, supply chain inflation and the growing cost of goods.
At the same time, retail and hospitality businesses typically operate on some of the tightest margins in the economy, with profitability heavily dependent on footfall, seasonal demand and consumer confidence. For many operators, even modest cost increases can significantly affect viability. By introducing a lower, permanent business rates multiplier for these sectors, the Government aims to provide targeted support that recognises their structural vulnerabilities and the essential role they play in local economies and high streets.
The announcement comes a day after the news that powers will be given to England’s Mayors to introduce overnight (visitor) levies. Also referred to as a tourist tax, the overnight levy will fall under the Mayor of London and be the subject of separate consultation.
Transitional relief, to phase in increases in business rates bills following the 2026 Revaluation, will be available.
