At the 2024 Autumn Budget, the UK Government announced that from 2026/27, existing Business Rate Relief for retail, hospitality or leisure (RHL) properties would be replaced by a lower rates multiplier to calculate the business rates payable on those properties. The amounts of the new multipliers were confirmed in the 2025 Autumn Budget.

New Business Rates Multipliers (from April 2026)

From April 2026, the system will expand to 5 multipliers, reflecting both business type and property value:

Properties that will benefit from the lower multipliers

• properties that are wholly or mainly used for qualifying retail, hospitality or leisure purposes will qualify for the RHL multiplier. This is a test on the use of the property, not just on the valuation description applied by the Valuation Office Agency.
• the retail sale or hire of goods. The ‘retail sale or hire of goods’ refers to the sale or hire of goods directly to the end-user. As such, it excludes wholesale sales and hires.

Properties that will not qualify for the lower multipliers 

• unoccupied properties
• properties with a rateable value of £500,000 or above, even if used for a qualifying retail, hospitality or leisure purpose

From 2026 the RHL multipliers are not a ‘relief’ and will be applied in accordance with government regulations. For further information on qualifying and excluded properties, please visit the GOV.uk website.

Preaparing for the change

We’re reviewing our property database to determine which multiplier applies to each business. Ratepayers may be contacted for additional information.

What you can do to get ready

• Check your current rateable value via the Valuation Office Agency - GOV.UK
• Review your eligibility for RHL classification and contact us if you have any queries
• Subscribe for updates via Sign up for business support, news and information and GOV.UK