Following on from today’s budget announcements, England’s property revaluation brings significant shifts to Business Rates Bills. Key headlines include:

Poundages

From 1 April 2026, business rates bills in England will be updated to reflect changes in property values following the 2023 revaluation.  As a result of the revaluation, the small business multiplier will decrease from 49.9p in 2025-26 to 43.2p in 2026-27, and the standard multiplier will decrease from 55.5p to 48p.

Retail Hospitality & Leisure (RHL) business rates multipliers, which will benefit over 750,000 RHL properties, including the shops and pubs which form the essence of our high streets. The RHL multipliers will be 5p below their national equivalents, making the small business RHL multiplier 38.2p and the standard RHL multiplier 43p in 2026-27.

The high-value multiplier will be 50.8p in 2026-27. (ie properties with RV £500,000 and above.

Transitional Relief Scheme

To support ratepayers facing large bill increases at the revaluation the government is introducing a redesigned Transitional Relief scheme worth £3.2 billion over the next three years, providing more generous support for those paying higher tax rates. The Transitional Relief caps will be as follows for properties with a rateable value of:

• Up to £20,000 (£28,000 in London): in 2026-27 – 5%, in 2027-28 – 10% (plus inflation), in 2028-29 – 25% (plus inflation).
• £20,001 (£28,001 in London) to £100,000: in 2026-27 – 15%, in 2027-28 – 25% (plus inflation), in 2028-29 – 40% (plus inflation).
• Over £100,000: in 2026-27 – 30%, in 2027-28 – 25% (plus inflation), in 2028-29 – 25% (plus inflation).

Note: These caps are applied before changes in other reliefs and local supplements.

New Supplement – The government is introducing a 1p supplement to the relevant tax rate for ratepayers who do not receive Transitional Relief or the Supporting Small Business scheme to partially fund Transitional Relief. This will apply for one year from 1 April 2026.

Reliefs

• Film studios relief – In the 2024 Spring Budget , the government announced that eligible film studios in England will receive a 40% reduction on their gross business rates bills until 2034. The government will continue to provide this relief at the current level to support the creative sector.
• Introducing a 10-year 100% business rates relief for eligible EV chargepoints and EV-only forecourts, to ensure that they face no business rates liability.

Supporting Small Business Scheme

Bill increases for the smallest businesses losing some or all of their small business rates relief or rural rate relief will be capped at the higher of £800 or the relevant transitional relief caps from 1 April 2026. Note, support is applied before changes in other reliefs and local supplements.

The government has expanded the 2026 Supporting Small Business scheme to ratepayers losing their retail, hospitality and leisure (RHL) relief. This will apply for three years from 1 April 2026, giving additional support worth £1.3 billion to those losing RHL relief. Note, support is applied before changes in other reliefs and local supplements.

Small Business Rate Relief

The government is extending the Small Business Rates Relief (SBRR) grace period from one to three years. This means businesses will now remain eligible for SBRR on their first property for three years after expanding into a second property. Businesses expanding after Budget day will be eligible.

Call for Evidence

The government is publishing a Call for Evidence at Budget on the role business rates play in investment. It also seeks feedback on the impact of the Receipts and Expenditure valuation method on investment.