With the draft 2026 Rating List now published, the Chancellor’s Budget provides important context for how business rates liabilities will evolve over the next rating period. Several announcements on multipliers, reliefs and transitional arrangements will directly shape ratepayer outcomes from April 2026.
Key Announcements from the Budget include:
Retail, Hospitality & Leisure (RHL)
- From 2026–27, RHL multipliers will be set 5p below their national equivalents, resulting in:
- Small business RHL multiplier: 38.2p
- Standard RHL multiplier: 43.0p
High-Value Properties:
- Properties with a Rateable Value (RV) of £500,000 or above will face a higher multiplier, set 2.8p above the national standard multiplier.
- This creates a 50.8p multiplier for 2026–27.
2026 Revaluation: Core Multipliers:
- As a result of the revaluation, national multipliers will fall to:
- Small business multiplier: 43.2p
- Standard multiplier: 48.0p
Transitional Relief Scheme:
A three-year Transitional Relief scheme will protect those seeing increased liabilities due to the 2026 revaluation:
| Rateable Value | 2026/27 Cap | 2027/28 Cap | 2028/29 Cap |
| Up to £20,000 (London £28,000) | 5% | 10% + inflation | 25% + inflation |
| £20,001–£100,000 (London £28,001+) | 15% | 25% + inflation | 40% + inflation |
| Over £100,000 | 30% | 25% + inflation | 25% + inflation |
Additional measures include:
- A temporary 1p supplement from 1 April 2026 for ratepayers not receiving Transitional Relief or Supporting Small Business Relief, to part-fund the scheme.
- The Small Business Rates Relief scheme will be maintained and expanded, particularly to support those transitioning away from RHL relief.
- Government will explore concerns raised about the Receipts & Expenditure valuation method, especially its impact on long-term, high-value investments.
- Business rates receipts are forecast to be held at £37bn, as set out on page 145 of the Budget.
While the full detail will take time to digest, the immediate impression is that this is a more favourable outcome than many anticipated. The fall in multipliers and a less aggressive Transitional Relief scheme provide some cushioning against the sharper increases in RVs emerging from the 2026 revaluation.
That said, significant uplifts in rateable values – subject to appeal – will still deliver notable increases in liability over time, albeit some of those will be phased in via the new Transitional Relief scheme.
If you would like to discuss the implications for your properties or portfolio, our expert team is ready to assist: info@dunlopheywood.com