About business rates

Business rates

Business rates are charged on most non-domestic properties, such as shops, offices and factories. Business rates are collected by local authorities. They are used to contribute towards the cost of local services.

Under the business rates retention arrangements introduced from 1 April 2013, authorities keep a proportion of the business rates paid locally. This provides a direct financial incentive for authorities to work with local businesses to create a favourable local environment for growth.

The money, together with revenue from council tax payers, revenue support grant provided by the government and certain other sums, is used to pay for the services provided by local authorities in your area.

Rateable value

Apart from properties that are exempt from business rates, each non-domestic property has a rateable value which is set by the valuation officers of the Valuation Office Agency (VOA), an agency of Her Majesty's Revenue and Customs. They draw up and maintain a full list of all rateable values, available on Valuation Office Agency webpages on the Government website (external link).

The rateable value of your property is shown on the front of your bill.

If your circumstances change, the valuation officer may alter the value. The ratepayer (and certain others who have an interest in the property) can appeal against the value shown in the list if they believe it is wrong. Full details on your rights of appeal are available from the Valuation Office Agency. Your billing authority can only backdate any business rates rebate to the date from which any change to the list is to have effect.

Business rates instalments

Payment of business rate bills is automatically set on a 10-monthly cycle. However, the government has put in place regulations that will allow businesses to require their local authority to enable payments to be made through 12 monthly instalments. If you wish to take up this offer, you should contact your local authority as soon as possible.

Changes to Business Rates multipliers from April 2026

From April 2026, the UK Government will introduce five new business rates multipliers.

These changes are part of wider reforms to create a fairer, more modern system that supports investment and protects the high street.

What is changing?

The current system uses two multipliers based on property rateable value:

1. Small business multiplier: for properties with a rateable value (RV) below £51,000
2. Standard multiplier: for properties with an RV of £51,000 and above

More details on the current multipliers can be found on the How business rates are calculated page.

From April 2026, the system will expand to five multipliers. These will reflect both business type and property value.

The five new multipliers will apply as follows:

1. Small business RHL multiplier: Retail, hospitality and leisure (RHL) businesses with RV below £51,000
2. Small business non-RHL multiplier: Non-RHL businesses with RV below £51,000
3. Standard RHL multiplier: RHL businesses with RV between £51,000 and £499,999
4. Standard non-RHL multiplier: Non-RHL businesses with RV between £51,000 and £499,999
5. Large property multiplier: For all properties with RV of £500,000 and above

Why these changes matter

The new system is designed to support local businesses and ensure fairer contributions from larger operations: 

• Support for the high street: The new RHL multipliers will replace the annual RHL relief, giving eligible businesses long-term certainty.
• Fairer contributions: A higher multiplier for large properties ensures major distribution centres and online retailers contribute proportionately.

Legislative safeguards

The Non-Domestic Rating (Multipliers and Private Schools) Bill will limit how much the new multipliers can differ from current rates:

• The large property multiplier can’t exceed the standard multiplier by more than 10p
• The RHL multipliers can’t be more than 20p lower than the small business multiplier

What happens next?

The following steps will take place before the changes come into effect:

• The Autumn Budget 2025 will confirm the exact rates for each multiplier
• The government will define eligibility for RHL properties through secondary legislation, expected to align with current RHL relief rules
• These changes will take effect alongside the 2026 revaluation of non-domestic properties

How we are preparing

We are reviewing our property database to determine which multiplier applies to each business.

We will contact some ratepayers to request more information where needed.

How you can prepare

You can take the following steps to get ready for the new system:

• Check your current rateable value via the Valuation Office Agency
• Review your eligibility for RHL classification
• Check the business premises and business rates section of the GOV.UK website to stay updated

Stay informed about your business rates

Be the first to know about changes to your property’s valuation for business rates. Valuations are changing on 1 April 2026. With a Valuation Office Agency’s (VOA) business rates valuation account, you can:

• check the details the VOA holds
• tell the VOA if something is wrong
• see how your property’s valuation was worked out.

Sign up for a business rates valuation account on the GOV.UK website and claim your property.