Changes to multipliers explained

The rateable value is set by the Valuation Office and is based on the annual rental value, size of the premises and, depending on the nature of the business, either the location or income:

• From 1 April 2026, rateable values will be based on the valuation date of 1 April 2024
• From 1 April 2023, rateable values will be based on the valuation date of 1 April 2021
• Until 31 March 2023, rateable values will be based on a valuation date of 1 April 2015

The multiplier is set by central government each financial year and normally changes in line with inflation. There were two multipliers, the standard multiplier and the small business rate multiplier. The standard rate is used for all businesses with a rateable value of £51,000 or more and unoccupied (void) businesses, the small business rate is for all occupied businesses with a rateable value of under £51,000.

2026/27 multiplier

2025/26 multiplier

• Small business rate multiplier: 49.9p
• Standard rate multiplier: 55.5p
  

2024/25 multiplier

• Small business rate multiplier: 49.9p
• Standard rate multiplier: 54.6p

Changes to business rates multipliers from 2026

Details of the changes to business rate multipliers in April 2026, why the changes matter, the legislative safeguards, and how to prepare.

From April 2026, the UK Government will introduce five new business rates multipliers.

These changes are part of wider reforms to create a fairer, more modern system that supports investment and protects the high street.

What’s changing

The current system uses two multipliers based on property rateable value:

1. Small business multiplier: for properties with a rateable value (RV) below £51,000
2. Standard multiplier: for properties with an RV of £51,000 and above

From April 2026, the system will expand to five multipliers. These will reflect both business type and property value.

New multipliers

The five new multipliers will apply as follows:

1. Small business RHL multiplier: Retail, hospitality and leisure (RHL) businesses with RV below £51,000
2. Small business non-RHL multiplier: Non-RHL businesses with RV below £51,000
3. Standard RHL multiplier: RHL businesses with RV between £51,000 and £499,999
4. Standard non-RHL multiplier: Non-RHL businesses with RV between £51,000 and £499,999
5. Large property multiplier: For all properties with RV of £500,000 and above

Why these changes matter

The new system is designed to support local businesses and ensure fairer contributions from larger operations:

• Support for the high street: The new RHL multipliers will replace the annual RHL relief, giving eligible businesses long-term certainty.
• Fairer contributions: A higher multiplier for large properties ensures major distribution centres and online retailers contribute proportionately.

Legislative safeguards

The Non-Domestic Rating (Multipliers and Private Schools) Bill will limit how much the new multipliers can differ from current rates:

• The large property multiplier can’t exceed the standard multiplier by more than 10p.
• The RHL multipliers can’t be more than 20p lower than the small business multiplier.

What happens next

The following steps will take place before the changes come into effect:

• The Autumn Budget 2025 will confirm the exact rates for each multiplier.
• The government will define eligibility for RHL properties through secondary legislation, expected to align with current RHL relief rules.
• These changes will take effect alongside the 2026 revaluation of non-domestic properties.

How we’re preparing

We’re reviewing our property database to determine which multiplier applies to each business.

How you can prepare

You can take the following steps to get ready for the new system:

• Check your current rateable value via the Valuation Office Agency
• Review your eligibility for RHL classification