The New Business Rate Regime 2026

Here are the new Rate in the £ multipliers from the 1st April 2026 financial year.

With, as capped up lifts, at –

And some additional cushioning advantages when taking on second RHL Premises.

The Government web site/s contain policy backgrounds which flows over the dramatic change in the business rates levy, explaining for example extinguishing Transitional Retail Relief (40%) as removing a “cliff-edge” of uncertainty –  the Government claims, to have “provided certainty and stability for businesses”. In addition –  a government Call for Evidence, inviting stakeholder input on the impact that business rates have on investment to ensure that any changes to the business rates system address the practical challenges faced by businesses. “Hokey cokey” then.

These are the Labour Party aims for the new system

“Protecting high streets is a priority for the government. The government is aware that the business rates burden falls more heavily on property-intensive sectors. The Retail Hospitality and Leisure (RHL) and high-value multipliers will help to rebalance the burden and create a fairer business rates system, with the revenue from the high-value multiplier funding the lower RHL multipliers. Overall, the benefit provided through the lower multipliers is greater than the additional cost of the high-value multiplier for the RHL sectors.  

Through the high-value multiplier, 1,900 distribution warehouses, such as those used by online giants, will contribute more. The high-value multiplier means raising an additional £270 million from distribution warehouses over the period 2026-27 to 2028-29. This additional revenue will directly support in-person retail.

The permanently lower Retail Hospitality Leisure (RHL) multipliers lead to over 35,000 pubs sharing an estimated £210 million reduction in bills, and nearly 30,000 restaurants sharing an estimated £180 million benefit over the period 2026- 27 to 2028-29. 4.4 The introduction of the RHL and high-value multipliers is the first step to delivering a fairer business rates system. Transforming the business rates system is a multi-year process and further reforms will be considered beyond Budget 2025”

Observations

Driven by the April 2026 revaluation Business Rates revenues are forecast to rise by on average 10.2% in 2026-27. The most significantly effected sector appears to be warehouse and logistics.

The Government seeks to resolve two primary issue juggernauts – immigration and the economy, which thy recognise they are being judged by. Hence the unhelpful length of uncertainty during the elongated lead up to the 25^th November Autumn Budget announcement.

So the UK will enter a high 38% tax regime unequalled since 1970, also amongst the highest taxed State in the G7, equalled by Germany and the French, the latter appearing to be in political disarray.

Spending public money in the hope of expanding an economy whilst placing and demanding a patriotic tell and sell financial burden on all working members, with frozen income tax bands, is a high gamble.

One hopes The Chancellor shouting Economic Growth brings about the desires her Government so desperately wishes to prove. Living standards hurt by rising inflation, a diversity of affected participants, NHS Doctor strikes today sounds unnervingly similar to the advent a previous cycle, which resulted eventually into the 1978 / 79 Labour Callaghan nightmare Winter of Discontent. Hopefully this time, the lights will stay on, with public investment and attempts to rebalance the State books will pay off.

The next Monetary Policy Committee meeting of the Bank of England is on Thursday 18^th December. Maybe Committee with a glimmer of good cheer will be brave enough to reduce interest rates a bit. We wait to see.

Assistance

Should you require assistance with your Business Rates, do let us know, so one of our consultants can see if they can help you – info@chthomas.com