Jul 13
From 1 April 2026, the business rates revaluation changed rateable values across England and Wales, and England moved from 2 main business rates multipliers to 5. For many commercial occupiers, that means the bill has changed even if the property has not.
If your rateable value rose, transitional relief may cap how quickly your bill increases, but it does not cancel the rise. It phases increases in over the 3-year rating list to 2028/29. If your rateable value fell, the reduction is not phased and should feed through straight away.
The key point for your bottom line is simple: do not budget only around the first capped bill. Model the later increases now, which is exactly the kind of planning covered in our guide on how management accounts help SME owners.
The Valuation Office Agency updates non-domestic rateable values every 3 years. The 2026 rating list is based on rental values at 1 April 2024. The total rateable value on England’s local list increased by 19.4%, although the impact varies widely by sector, property type and location.
England’s previous small business and standard multipliers have also been replaced by 5 multipliers. The temporary 40% retail, hospitality and leisure relief, which was capped at £110,000, ended on 31 March 2026. It has been replaced by lower retail, hospitality and leisure multipliers for eligible properties below £500,000 rateable value.
| Property type and rateable value | 2026/27 multiplier |
|---|---|
| Retail, hospitality and leisure, RV below £51,000 | 38.2p |
| Other businesses, RV below £51,000 | 43.2p |
| Retail, hospitality and leisure, RV £51,000 to £499,999 | 43.0p |
| Other businesses, RV £51,000 to £499,999 | 48.0p |
| Any property, RV £500,000 and above | 50.8p |
The House of Commons Library briefing gives a useful overview of the 2026 revaluation and the policy changes behind it.
Transitional relief limits how much your business rates bill can rise in a year because of the revaluation. It is applied automatically by your local council if you qualify. The scheme uses your liability at 31 March 2026 as the starting point and phases increases over the 2026/27, 2027/28 and 2028/29 financial years.
This is where businesses can get caught out. The cap is tighter in year 1 and then loosens later, so a manageable 2026/27 bill does not mean the full increase has gone away. Build the full 3-year path into your forecasts alongside the wider job of keeping cash flow under control.
A 1p supplement applies for 2026/27 to ratepayers who do not receive transitional relief or Supporting Small Business relief. If you receive either of those, the supplement is offset.
Small Business Rates Relief continues in England. Properties with a rateable value below £12,000 can usually qualify for full relief, with tapered relief up to £15,000, subject to the usual rules. The grace period when a ratepayer takes on a second property has also been extended from 12 months to 3 years.
Supporting Small Business relief caps increases for businesses losing some or all of their small business, rural or retail, hospitality and leisure support. Eligible pubs and live music venues also receive a 15% business rates relief for 2026/27, on top of other support.
Take a shop whose rateable value rises from £30,000 to £40,000. As an eligible retail property below £51,000, it uses the 38.2p retail, hospitality and leisure multiplier rather than the standard small business multiplier. That softens the increase, and transitional relief may cap the first-year rise if the bill would otherwise jump sharply.
The important point is that the cap is temporary. The bill can continue moving towards its full level in later years. The same cost-planning discipline runs through our advice on protecting margins against cost inflation and the KPIs every SME owner should watch monthly.
Business rates are devolved, so the England system is not universal. Wales also revalued from 1 April 2026, but sets its own multiplier and reliefs. Northern Ireland runs non-domestic rates through Land and Property Services and also moved to a new valuation list from April 2026. Scotland has its own valuation and rates system.
If you have premises in more than one jurisdiction, you are dealing with more than one rating regime. Our cross-border accounting and tax team can help, alongside the wider issues covered in our guide to setting up a company in both the UK and Ireland.
Check your new rateable value using the Find a business rates valuation service on GOV.UK. Then compare it with your bill, confirm the correct multiplier has been used, and check that all reliefs have been applied.
If a wider review raises questions, our forensic accounting team can help investigate. To model the 3-year cash impact, speak to our SME business solutions team. If a higher bill is putting pressure on cash, take advice early through our recovery and restructuring work.
No. It is calculated and applied automatically by your local council if you qualify.
Only if you do not receive transitional relief or Supporting Small Business relief. If you receive either, the supplement is offset.
Yes. Reductions are not phased under transitional relief, so the lower value should feed through from 1 April 2026.
Yes. You can raise a Check case through a business rates valuation account on GOV.UK. Keep paying your bill while the review is ongoing.
If you want to be sure your bill is correct and your budget reflects the increases ahead, talk to SCC Chartered Accountants. A short review now can help you avoid a much larger surprise in 2027 and 2028.
Contact us to find out more about SCC services
NI:
UK
ROI:
Email Address:
Friday
Jun 1
Jan 5
Our award-winning team across our offices in the UK and Ireland collaborates to deliver the highest standards in a fast moving and evolving manner.
