Despite optimistic headlines, many smaller operators in the retail, hospitality, and leisure sectors are set to pay more in business rates following the Government’s Autumn 2025 Budget. While the announcement promised relief and reform, the reality for many is a notable increase in costs.
Key Highlights from the Autumn 2025 Budget
Changing Multipliers for 2026/27
The Budget introduces new business rate multipliers for the 2026/27 period, with distinct rates for retail, hospitality, and leisure properties. There’s also a new rate for properties with a Rateable Value over £500,000.
General properties:
- Small: 43.2p
- Standard: 48p
- Over £500K: 50.8p
Retail, hospitality & leisure (RHL):
- Small: 38.2p
- Standard: 43p
Revaluation of the Rating List
A major revaluation comes into effect on 1 April 2026. The draft list is now available on the Gov.UK website, allowing businesses to review their new rateable values.
Transitional Relief Scheme
To soften the impact of revaluation, a Transitional Relief scheme will limit increases in rates bills. However, this relief is partly funded by a 1p supplement on the multiplier for one year, paid by those not receiving Transitional Relief.
What does this mean for smaller operators?
For most smaller operators in the Retail, Hospitality, and Leisure sectors, the changes will result in an increase of between 5% and 15% in business rates next year. This is not the like-for-like replacement of Covid Relief that many had hoped for.
How businesses can prepare for the changes
With significant changes ahead, proactive preparation is essential. Here are practical steps businesses can take:
Review the draft Rating List
Check your property’s new rateable value. Understanding your updated valuation is the first step in forecasting your rates bill for 2026/27.
Assess the impact on your budget
Calculate how the new multipliers will affect your business rates. Factor in the potential 5–15% increase and consider how this will influence your operating costs and profitability.
Explore transitional relief eligibility
Determine if your business qualifies for Transitional Relief, which can help limit the immediate impact of increased rates. If you’re not eligible, plan for the additional 1p supplement on the multiplier for one year.
Seek professional advice
Consult our business rates experts at This email address is being protected from spambots. You need JavaScript enabled to view it., to ensure you’re making the most of available reliefs and exemptions. Expert guidance can help you navigate appeals, revaluations, and strategic planning.