The Autumn Budget 2025 introduced further changes to business rates — and while some headlines sound positive, many businesses and property owners could still face higher bills in practice.
That’s mainly because business rates are affected by more than just the headline “multiplier”. Rateable values, supplements, and relief rules all play a part — and for some, the total bill could rise from April 2026.
If you occupy, own, or manage commercial property, it’s worth understanding what’s changing so you can plan ahead and protect your cash flow.
Is the business rates multiplier being reduced?
Yes — the Government has confirmed the annual business rates multiplier in England will reduce.
However, for most businesses, this doesn’t automatically mean a cheaper bill.
Why? Because rateable values are changing, and there are also new supplements being introduced. So even with a lower multiplier, many occupiers could still pay more overall.
There is also a temporary change coming: a 1p increase in the multiplier in 2026/27 for properties that do not qualify for transitional relief. That could catch some businesses by surprise.
What’s happening to Retail, Hospitality and Leisure relief?
Retail, Hospitality and Leisure (RHL) support is changing again from April 2026.
In simple terms: the relief is shrinking.
Under the new structure:
Properties with a rateable value up to £51,000 are expected to receive around 20% relief
Properties with a rateable value between £51,000 and £500,000 are expected to receive around 10% relief
This follows on from a big reduction already, where RHL relief dropped from 75% to 40% for 2025/26.
So while some of the burden may shift away from larger occupiers (who previously helped “fund” relief through higher rates), smaller businesses may still feel the impact through tighter margins and reduced support.
What does this mean for property owners?
If you own or occupy larger commercial property, the Budget changes may have more bite.
For properties with a rateable value above £500,000, a “super supplement” is expected to apply (reported at around 5.8%).
There is some protection in place: transitional relief caps are increasing to 30% in certain cases, which can limit how sharply bills rise year-on-year.
One practical issue though: the new rating list timetable means some businesses may have limited time to budget once details are confirmed — so it’s worth reviewing projections early.
Good news for pubs and live music venues
After backlash to earlier reforms, the Government has announced extra support for pubs and live music venues.
From April 2026, eligible pubs and live music venues will receive a 15% business rates relief for 2026/27, and then bills will be frozen in real terms for a further two years (so they should not rise by more than inflation).
There’s also a review planned into how pubs are valued for business rates ahead of the next revaluation.
How to prepare (without over complicating it)
Business rates can hit cash flow hard because they’re a fixed cost — and they don’t care whether it’s a quiet month.
A sensible approach now is:
Check your rateable value and watch for updates
Work business rates into your cash flow forecast for 2026/27
Make sure you’re claiming any reliefs you’re eligible for
Understand whether transitional relief applies to you
If you’re unsure, get advice early — business rates are one of those areas where small details can make a big difference
How we can help
If you’re concerned about rising bills or you want to understand what you’ll be paying from April 2026, we can help you:
review your position and likely exposure
check which reliefs or caps may apply
plan for the impact on cash flow and budgets
If you’d like support, get in touch with our team.