The Government has announced updates to business rates ahead of the April 2026 revaluation. At first glance, the new multipliers appear lower, suggesting reduced bills for some businesses. However, the final amount payable also depends on the updated rateable values (RVs) from the revaluation.
This briefing explains the changes, compares them with the current regime, and illustrates the practical impact on businesses.
1. Background: Revaluation Timing and Reference Dates
The last business rates revaluation in England and Wales took effect on 1 April 2023, based on market rental values as of 1 April 2021.
The next revaluation will take effect on 1 April 2026, and the Valuation Office Agency (VOA) has published draft rateable values based on market rental values as of 1 April 2024.
Each property is valued individually, so RV changes vary depending on location, size, type, and local market conditions.
The impact of the multiplier changes therefore depends on each property’s individually revalued RV.
View Your Current and Draft Business Rates Valuation
You can view your business rates, check your current rateable value, and access the draft 2026 valuation using the official government service:
https://www.gov.uk/find-business-rates
2. Current vs New Multipliers
| Band | Rateable Value (RV) | 2025/26 Multiplier | 2026/27 Multiplier |
| Small | < £51,000 | 49.9p | 43.2p (non-RHL) / 38.2p (RHL) |
| Standard | £51,000 – £499,999 | 55.5p | 48.0p (non-RHL) / 43.0p (RHL) |
| High-value | ≥ £500,000 | 55.5p | 50.8p |
3. Illustrative Examples: Multiplier Only vs Draft Revaluation
Multiplier-only scenario (2026/27):
| Property | RV | 2025/26 Bill | 2026/27 Bill (Multiplier Only) | Difference |
| Small RHL | £30,000 | £14,970 | £11,460 | −23% |
| Mid RHL | £100,000 | £55,500 | £43,000 | −23% |
Including draft 2026 RVs:
Scenario A – Moderate RV increase
| Property | Draft RV | Multiplier | Bill | Difference vs 2025/26 |
| Small RHL | £35,000 | 38.2p | £13,370 | −11% |
| Mid RHL | £110,000 | 43.0p | £47,300 | −15% |
Scenario B – Higher RV increase
| Property | Draft RV | Multiplier | Bill | Difference vs 2025/26 |
| Small RHL | £42,000 | 38.2p | £16,044 | +7% |
| Mid RHL | £120,000 | 43.0p | £51,600 | −7% |
These examples show that final bills depend on each property’s revaluation. Multiplier reductions alone may not guarantee lower bills.
4. Practical Implications for Businesses
- Multiplier reductions may reduce bills, depending on the RV.
- Properties with moderate RV increases may still see lower bills.
- Properties with higher RV increases may see similar or higher bills.
- RHL properties below £500,000 now have a fixed multiplier.
- High-value hereditaments may see little change overall.
5. Summary: Multiplier vs Revaluation
| Property Type | Multiplier Effect | Possible RV Effect | Net Impact Range |
| Small RHL (<£51,000) | −23% | Moderate to high increase | Neutral to +7% |
| Mid-sized RHL | −23% | Moderate to high increase | −15% to −7% |
| Large hereditament (≥£500,000) | −8.5% | Variable | Neutral |
Key Point: The final business rates bill is determined by both the multiplier and the individual property’s RV. The revaluation ensures bills reflect current market conditions.
Small businesses:
- The multiplier reduction is largest.
- Many small properties have seen RV increases in the draft revaluation.
- Outcomes vary: bills may stay the same, decrease slightly, or increase.
Mid-sized businesses:
- Multiplier reduction is smaller.
- Moderate RV increases may still produce lower bills.
- Higher RV increases may neutralise the reduction.
High-value businesses:
- Multiplier reduction is smallest.
- Bills likely remain similar overall.
6. Summary, Valuations, and How to Appeal
While the multiplier reductions introduced in the recent budget provide support for businesses, the positive effect may be reduced if a property’s rateable value increases following the Valuation Office Agency’s (VOA) latest draft valuations. A higher RV can reduce or neutralise the benefit of a lower multiplier.
If you believe your new rateable value is inaccurate, you can challenge it through the VOA’s Check, Challenge, Appeal (CCA) process.
This system allows you to:
– Review the information the VOA holds about your property;
– Correct any factual inaccuracies; and
– Formally challenge the valuation if you disagree with it.
Guidance on challenging your business rates valuation is available on the VOA website.
