Dunlop Heywood Summer 2025 Update: Business Rates in England

As the summer break is well under way, the business rates system continues to make headlines - impacting businesses large and small. Whether you’re a property owner, high street retailer, or part of the hospitality sector, it’s crucial to be aware of the latest updates and what they mean for your finances over the coming year. 2025/26 Business Rates: What’s Changed?

• Small Business Multiplier: Frozen at 49.9p for 2025/26, this applies to properties with a rateable value (RV) below £51,000. This means if your property falls into this category, your rates remain unchanged from last year.
• Standard Multiplier: Increased from 54.6p to 55.5p per pound of rateable value. Larger properties (RV £51,000 and above) may see higher bills, reflecting September’s inflation figure.
• Reduced Relief for Retail, Hospitality & Leisure (RHL): The RHL scheme now offers a 40% discount for 2025/26, down sharply from 75% last year. The relief is capped at £110,000 per business, meaning that some occupiers will see their bills nearly double. Most high street businesses, independent shops and cafés, pubs, and entertainment venues fall into this category.
• No More Charitable Relief for Private Schools: As from April this year, private schools are no longer be eligible for charitable business rates relief.

How Does This Affect You?

• Many businesses will receive new rates bills that are noticeably higher than last year’s - especially those that have benefited from the higher RHL discount previously.
• Small businesses occupying properties with an RV under £51,000 will see smaller increases due to the frozen multiplier, but those with higher RVs will be affected by the uplift.
• If you’re eligible for RHL relief: Check your total across all locations - relief is capped at £110,000 per business, not per property.

Looking Ahead: Permanent Reform from 2026 The Government has announced that, to give certainty and boost the high street:

• From April 2026, lower permanent multipliers will apply to retail, leisure and hospitality properties with RVs under £500,000, with funding for this provided by a new higher multiplier for properties over £500,000.
• This aims to make support for vulnerable sectors more predictable, breaking the cycle of year-on-year temporary reliefs.

Dunlop Heywood Advice: What to Do Now

• Double-check your bill: Ensure your property’s rateable value is correct and your reliefs have been properly applied. Mistakes can happen, and overpayments are surprisingly common.  https://dunlopheywood.com/check-your-rates-bill/
• Prepare for possible increases: Budget for potentially higher rates, especially if you’re losing some relief.  New draft 2026 list RV’s will be issued in Q4 2025 making this a key point to engage with the system if you have not previously.
• Plan for the bigger picture: With permanent reforms on the horizon, consider the long-term impact on your property investments and business models.
• Appeal if necessary: The deadline for submitting appeals against the 2023 Rating List is 31 March 2026, so review your assessments promptly.
• Ask for advice: Dunlop Heywood’s team can help check your bill, advise on appeals, and guide you through changes to ensure you don’t overpay or miss out on reliefs.

If you have questions or concerns about your business rates bill for 2025/26, or want support ahead of the bigger reforms coming in 2026, get in touch. We’re here to help you navigate these changes and keep your property strategy on track. info@dunlopheywood.com Keep following Dunlop Heywood for advice, market updates, and tips to help your business thrive.