New Business Rates from April 2026: What UK Businesses Need to Know

From 1 April 2026, major reforms to the UK business rates system will come into effect and they could significantly affect your annual tax bills. These changes result from a new business rates revaluation and reforms introduced in recent government budgets. Understanding them early can help you plan ahead and potentially save your business money. 

What’s Changing? The 2026 Revaluation

Every three years, the Valuation Office Agency (VOA) reassesses the rateable values of commercial properties across England and Wales. The rateable value is an estimate of what your property could rent for on the open market, based on data from a past valuation date, for 2026, that date was 1 April 2024. 

These updated figures are used by local councils to calculate your business rates bill. Because the market has shifted since the last revaluation, many properties will see changes in their rateable values, which in turn affects what you pay from April 2026. 

Important: An increase in your rateable value doesn’t automatically mean your business rates bill will rise by the same amount, the final bill also depends on multipliers, reliefs, and transitional arrangements.

New Multipliers: A More Complex System

From April 2026, the government is introducing five different business rates multipliers, replacing the previous system of two. These multipliers are used to calculate your rates bill by applying a charge per £ of your property’s rateable value. 

The new structure reflects both property type and size of the business:

• Lower multipliers for smaller retail, hospitality and leisure (RHL) properties with a rateable value under £500,000

• Standard multipliers for most other properties

• A higher multiplier for high-value properties (rateable value of £500,000+) 

  
  

This approach aims to support high streets and smaller businesses while asking larger properties to contribute more. 

 Support and Relief Schemes to Smooth the Transition

To help businesses manage sudden increases in bills resulting from these changes, the government has introduced transitional relief schemes:

• Support for Small Business (SSB) scheme: Caps annual increases for businesses losing reliefs like Small Business or RHL relief. You won’t have to pay more than £800 above last year’s bill (or the relevant transitional cap) in the first year of the new system. 

• Transitional Relief: Gradually phases in any large increases over three years so that no business faces a sudden jump in liabilities. 

• 
  

These schemes are applied automatically by local authorities, there’s no need to apply for them separately. 

Why These Changes Matter to Your Business

Here’s what businesses may experience from April 2026:

Possible Increases or Decreases

• If your rateable value rises sharply, your business rates could go up even with lower multipliers. Some sectors like hospitality have already reported sharp increases in valuations. 

• Others in sectors where property values have fallen may see their bills drop.

Targeted Support for Smaller Businesses

• Smaller retail, hospitality, and leisure businesses could benefit from permanently lower multipliers, replacing the more temporary reliefs of recent years. 

Larger Properties May Pay More

• Properties with rateable values above £500,000 are likely to face a higher business rates multiplier, which could increase overall bills for larger firms or national chains.

Final Thoughts

The April 2026 changes aren’t just another annual update, they represent a system overhaul with real financial impacts for many UK businesses. Whether your bill rises or falls will depend on market changes, your property’s valuation and the new multiplier structure.

By being proactive now, reviewing valuations, understanding reliefs and seeking expert support, you can make informed decisions that protect your bottom line.