Changes to business rates announced in the Budget 2025

Retail, hospitality and leisure (RHL) sectors 

The Government announced a reduction to the business rates multipliers for the retail, hospitality and leisure (RHL) sectors from 1st April 2026, said to benefit over 750,000 properties including shops and pubs. The RHL multipliers will be 5p below their national equivalents, making the 2026/27 multipliers: 

• small business RHL multiplier 38.2p  
• standard RHL multiplier 43p

The Government had previously announced their intention to reduce business rates for these sectors in the Autumn Budget 2024, and the new multipliers will replace the temporary 40% RHL business rates relief in place for 2025/26. 

Multipliers for non-RHL businesses 

Business rates revaluations will ensure that the rateable values of properties remain in line with market changes, and that the tax rates adjust to reflect changes in those values. Following revaluations, all ratepayers will pay a lower tax rate than they do now. 

• The standard multipliers with be: 
• small business multiplier 43.2p 
• standard multiplier 48p  

New higher rate for highest value properties 

To pay for the reduction in the standard rate multipliers, the Government is introducing a higher rate on the most valuable properties with rateable values of £500,000 and above, representing around 1% of properties.  Initially this will be 2.8p higher than the standard rate. The higher rate multiplier will therefore be 50.8p for 2026/27.  

Legislation will be drafted to allow the Government to set this higher rate up to 10p higher than the standard multiplier in future. 

Other Government support announced 

Most ratepayers will see no bill increases with just under a quarter seeing their bills go down. For those faced with increases, the Government is providing a support package worth £4.3 billion over the next three years, including:   

• A £3.2 billion Transitional Relief scheme giving support to the largest ratepayers, including airports and hospitality, by capping how much your bill can increase by. 
• A £500 million 2026 small business rate relief scheme to help the smallest businesses with £15,000 or less rateable valued property. 
• Expanding the supporting small business relief scheme to businesses who were previously, but are no longer eligible for RHL relief, protecting independent pubs and shops as they transition to permanently lower tax rates, worth an additional £1.3 billion.  
• Providing an additional two years of small business rates relief for businesses expanding into a second property after Budget Day.
• Consulting with stakeholders on further business rates reform. 

Electric vehicle chargepoints and forecourts 

In support of the Net Zero agenda, the Chancellor announced a new ten year 100% business rates relief for electric vehicle (EV) chargepoints and EV-only forecourts, so these businesses effectively have a ten year business rates holiday.   

Call for evidence on business rates and investment 

A consultation has been opened on a possible re-structure of the business rates system to one with different progressive bands taxed at increasing rates. To respond to the call for evidence by 18th February 2026 go to the this page on the GOV.UK site. 

Further help and advice 

If you would like to discuss how the business rates changes and other measures in the Autumn Budget 2025 affect your business with a trusted local accountant, call 01756 541005 or use our online contact form here. 

Last updated 5 Dec 2025 | First published 5 Dec 2025

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This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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