What Changed in the 2026 Business Rates Revaluation?
Learn what changed in the 2026 business rates revaluation, including new rateable values, the RHL multiplier, and transitional relief.
The 2026 revaluation updated all rateable values to reflect April 2024 rents, introduced a permanent RHL multiplier at 38.2p, and launched a 3.2 billion transitional relief scheme.
Key Facts
In Detail
The 2026 business rates revaluation brought several significant changes for hospitality businesses in England. All rateable values were updated to reflect open market rental values as of 1 April 2024, replacing the previous values based on April 2021 evidence. This meant some properties saw increases while others saw decreases, depending on how commercial rents in their area had moved. The most significant structural change was the introduction of a permanent RHL (Retail, Hospitality and Leisure) multiplier at 38.2p per pound of rateable value for qualifying properties with RV below 51,000. This replaced the previous system of annual retail relief discounts that had to be renewed each year. The standard multiplier for non-qualifying properties was set at 48.0p. The government also introduced a 3.2 billion transitional relief scheme to limit how much bills could increase in a single year, protecting businesses in areas where rents had risen sharply. Additionally, a new 15% pubs and live music venues discount was introduced on top of the RHL multiplier, and Supporting Small Business relief was extended to cap bill increases at 800 per year for businesses losing previous reliefs.
New Rateable Values
Every commercial property in England received a new rateable value based on estimated open market rent as of 1 April 2024. Properties in areas where commercial rents rose between 2021 and 2024 saw increases. Properties in declining areas saw reductions. The shift was particularly notable in some city centres where post-pandemic recovery drove rents up, and in some high streets where retail vacancy rates remained high.
Transitional Relief
To prevent sudden large bill increases, the government funded a 3.2 billion transitional relief scheme. This caps the annual percentage increase in your bill, with lower caps for smaller properties. The scheme is self-funding over the life of the rating list, meaning that businesses seeing bill decreases also have their reductions phased in gradually.
Impact on Hospitality
The permanent RHL multiplier is broadly positive for hospitality, replacing uncertain annual discounts with a structural lower rate. However, the 51,000 RV threshold means larger properties (many hotels, large restaurants, and entertainment venues) still pay the standard rate. The pubs discount provides additional targeted support for a sector that has faced sustained pressure.
Frequently Asked Questions
When is the next revaluation?
The next revaluation is expected in 2029, based on rental values as of April 2027. The government has committed to three-yearly revaluations to keep rateable values more current.
Did all businesses see bill increases?
No. Businesses in areas where commercial rents fell between 2021 and 2024 may have seen their rateable values and bills decrease. The transitional relief scheme also phases in both increases and decreases over time.
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