After much speculation, numerous leaks and several U-turns, Rachel Reeves finally delivered the 2025 Budget today. At the same time, the VOA published the draft 2026 Rating List, confirming the outcome of the latest business rates revaluation due to take effect on 1 April 2026. Our summary of today’s announcements, and what they mean for ratepayers, is set out below.

2026/27 Business Rates Multipliers

As widely expected, the Government has confirmed that five multipliers will apply from next April, compared with the existing two. Multipliers are applied to rateable values to calculate a property’s annual rates liability. From 1 April 2026, all property classes will benefit from a lower multiplier, with the small property multiplier reducing from 49.9p to 43.2p (a 13.5% reduction) and the standard multiplier falling from 55.5p to 48p.

While this appears to be good news, any revaluation is fiscally neutral. The reduced multipliers have been calculated to offset the total increase in rateable value across the country from next April. As a result, if a property’s rateable value increases by more than 13.5%, its annual bill is still likely to rise.

Retail, Hospitality and Leisure (RHL) Properties

Two new reduced multipliers for RHL properties will be introduced from 1 April, replacing the existing RHL Relief Scheme. These will be set at 38.2p for properties with rateable values up to £51,000 and 43p for those between £51,000 and £499,000 - representing discounts of 11.57% and 10.42% from the equivalent non-RHL multipliers.

The previous scheme provided a 40% discount in rates payable, but this was capped at £110,000 per business. Although the new multipliers are less generous, the removal of the cap should result in a lower overall rates liability for retailers with multiple properties.

High Value Properties

Properties with a rateable value of £500,000 or more will be subject to a new large property multiplier of 50.8p - an uplift of 5.83% on the standard multiplier. This measure is intended to help fund the new reduced RHL multipliers. It will apply across all property classes, including RHL, meaning that large retailers such as Tesco and M&S will pay a premium compared with occupiers of smaller retail properties who will benefit from the RHL discount.

2026 Revaluation

The VOA has also published the Draft 2026 Rating List. As anticipated, the industrial sector will see the largest increases in rateable values from 1 April 2026. For high-value industrial properties - those with rateable values of £500,000 and above - the impact of the new high value multiplier, and in many cases a significantly increased rateable value, is likely to result in substantial increases in liability from next April.

Further detail on the impact of the 2026 revaluation will be released in due course. In the meantime, for advice on your existing 2023 rateable value, including the potential for challenge before the 31 March 2026 deadline, or for general business rates support, please contact the Business Rates team.