The Government sets the multipliers for each financial year for the whole of England according to formulae set by legislation. This does not apply in revaluation years when the multiplier will be adjusted to reflect changes in the overall total of rateable values for England.
There are two multipliers: the standard non-domestic rating multiplier which has been set at 51.2 pence for 2022/23 and the small business non-domestic rating multiplier which has been set at 49.9 pence for 2022/23. The former is higher to pay for small business rate relief.
We work out the business rates bill by multiplying the rateable value of the property by the appropriate multiplier.
The current multipliers are shown on the front of your bill.
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:
| Category | Rateable Value (RV) | Multiplier |
|---|---|---|
| Small Business RHL | Below £51,000 | 38.2p |
| Standard RHL | £51,000 to £499,999 | 43.0p |
| Large (all properties) | £500,000 and above | 50.8p |
| Small Business (non-RHL) | Below £51,000 | 43.2p |
| Standard (non-RHL) | £51,000 to £499,999 | 48.0p |
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.
However, please note that previously the Government allowed local authorities to show discretion when awarding the Retail, Hospitality and Leisure Relief to those that were not included in their specified criteria incorporated within the legislation of which that discretion will now be removed with effect from 1 April 2026.
Therefore, some ratepayers may find that although they qualified for the RHL under the current scheme, they will not necessarily qualify for the new RHL multiplier.
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 automatically in accordance with government regulations. For further information on qualifying and excluded properties, please visit the GOV.uk website.
Preparing for the change
We are currently reviewing our property database to determine which multiplier applies to each business. Ratepayers may be contacted for additional information if required.
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 by completing the recent issued form and should you have any queries then please contact us immediately.