From April 2026, many businesses across England and Wales may see changes to their business rates bills.
For some, that could mean an increase — particularly following the upcoming property revaluation and the withdrawal of certain reliefs that were introduced during the Covid pandemic.
So, what’s changing, and how can you prepare?
Let’s break it down in simple terms.
What Are Business Rates?
Business rates are charged on most non-domestic properties, including:
- Offices
- Shops
- Warehouses
- Factories
- Restaurants, pubs and hotels
- Guest houses and holiday lets
The amount you pay depends mainly on two things:
- The rateable value of your property
- The business rates multiplier
There are also several reliefs available that can reduce (or even eliminate) your bill.
Rateable Value – Revaluation from April 2026
Business properties are revalued every three years.
The next revaluation comes into effect on:
1 April 2026
Rateable values are based on the estimated rental value of the property at the valuation date.
For this revaluation, the valuation date is:
1 April 2024
Many businesses will be able to check their new rateable value online ahead of time — and it’s worth doing so early.
Business Rate Multipliers – What’s Changing?
The multiplier is the figure used to calculate your business rates bill, expressed as pence in the pound.
Until April 2026, there have been two main multipliers:
- A standard multiplier (for properties with rateable value of £51,000 or more)
- A small business multiplier (for properties below £51,000)
For 2025/26, these were:
- Standard: 55.5p (57.7p in London)
- Small business: 49.9p (51.9p in London)
New Multipliers for 2026/27
From April 2026, new lower multipliers will apply for many businesses (helping offset some of the increase in rateable values).
For properties valued at £500,000 or less (and not in the retail, hospitality and leisure sector):
- 48p for properties between £51,000 and £500,000
- 43.2p for properties below £51,000
Retail, Hospitality and Leisure (RHL) Sector Changes
Businesses in the RHL sector will see a new lower multiplier introduced, replacing the relief that was previously available.
The new RHL multiplier will be:
- 43p for rateable value between £51,000 and £500,000
- 38.2p for rateable value below £51,000
The Government has also announced extra support for pubs, including an additional:
15% relief, on top of other reliefs available.
Properties with a rateable value of £500,000 or more will use a multiplier of 50.8p.
Small Business Rate Relief
Small business rate relief may apply if your property has a rateable value of £15,000 or less.
- Properties valued at £12,000 or less pay no business rates
- Between £12,000 and £15,000, relief reduces gradually from 100% down to nil
This can make a big difference for smaller premises.
Transitional Relief – Limiting Sharp Increases
Revaluations can cause sudden jumps in business rates bills, so transitional relief exists to cap how quickly bills can rise.
From April 2026, the caps for increases are:
- Up to £20,000 rateable value: max 5% increase in 2026/27
- £20,001 to £100,000: max 15% increase
- Over £100,000: max 30% increase
These caps then increase gradually in future years.
Supporting Small Business Relief
Additional support is also available where businesses lose some relief due to the 2026 revaluation.
This applies if the rateable value increases and the business loses:
- Small business rate relief
- Rural relief
- RHL relief
- Supporting small business relief introduced in 2023
The increase is capped at the higher of £800 or the relevant percentage limit.
What Should You Do Now?
With major changes coming in April 2026, it’s worth asking:
- Have you checked your new rateable value?
- Will your business lose any existing reliefs?
- Could you qualify for transitional or supporting relief?
Business rates can have a real impact on cashflow, especially for shops, restaurants, and hospitality businesses.
Need Help Understanding Your Business Rates Bill?
At Jon Davies Accountants, we help business owners stay ahead of tax and cost changes — including business rates and the reliefs available.
If you’re concerned about how the April 2026 changes could affect your business, get in touch with Jon or the team today for advice tailored to your situation.
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Any questions?
If you’d like a meeting or a video call to discuss this, please get in touch with your favourite Liverpool accountant
- You can ring us on 0151 380 8080
- You can email us at gr****@*********************co.uk