The Autumn Budget 2025 brought more changes to business rates and many businesses and property owners could be at risk of higher bills.
Businesses need to know if they are affected and seek the right support so they can prepare for unexpected pressure on their cash flow.
Is the business rates multiplier being reduced?
The Government confirmed that the annual business rates multiplier in England will decrease by between 11.7 per cent and 13.5 per cent.
While this is good news for some, most businesses are unlikely to see meaningful savings. Rising rateable values, along with new supplements, mean that many occupiers could be paying more.
The reforms will also introduce a temporary 1p increase in the multiplier in 2026/27 for properties that do not qualify for transitional relief.
What are the changes to Retail, Hospitality and Leisure relief?
Retail, Hospitality and Leisure (RHL) relief will reduce again from April 2026.
Properties with a rateable value of up to £51,000 will receive around 20 per cent relief, while those between £51,000 and £500,000 will receive 10 per cent relief.
This follows on from a significant reduction from 75 per cent to 40 per cent in 2025/26.
While this may reduce the burden on larger occupiers who previously funded the relief, smaller businesses may feel the impact through higher rates bills.
What does this mean for property owners?
Larger commercial properties with a rateable value above £500,000 will be faced with a super supplement, currently set at around 5.8 per cent.
There will be some protection as the transitional relief cap is increasing to 30 per cent.
However, as the new Rating List was published late, it means businesses have limited time to plan their budget.
What are the new cuts to pubs and music venues?
Following backlash from the 2025 Autumn Budget, the Government has announced that pubs and live music venues will now get a 15 per cent cut to the new business rate bills from April 2026.
This cut will be frozen for two years and a review will be conducted on the method used to value these venues for business rates.
How can we help you prepare?
Businesses should be reviewing their projected rateable values and factoring business rates into their cash flow forecasts.
We can help you understand how the rate changes could affect you and if you are eligible for relief. We can also support your budgeting plans so you can make informed decisions come April 2026.
