Further changes to business rates were announced in the Autumn Budget 2025 and the impact could be felt by a wide range of businesses and property owners.
While some measures appear positive, the reality is more complex. In many cases, higher rateable values and additional supplements may outweigh headline reductions, placing extra pressure on cash flow if businesses are not prepared.
Understanding what is changing and how it applies to you will be key ahead of April 2026.
Changes to the business rates multiplier
The Government has confirmed that the annual business rates multiplier in England will fall by between 11.7 per cent and 13.5 per cent.
Although this sounds encouraging, most businesses are unlikely to see a significant reduction in their overall bill. Increases in rateable values, combined with the introduction of new supplements, mean that many occupiers may still face higher costs.
In addition, a temporary one penny increase in the multiplier will apply in 2026/27 for properties that do not qualify for transitional relief, further limiting any benefit from the headline cut.
Retail, Hospitality and Leisure relief from April 2026
Retail, Hospitality and Leisure relief will reduce again from April 2026.
Under the revised scheme, properties with a rateable value of up to £51,000 will receive relief of around 20 per cent.
Properties with a rateable value between £51,000 and £500,000 will receive relief of ten per cent.
This follows a sharp reduction in relief from 75 per cent to 40 per cent in the 2025/26 tax year. While this shift may ease pressure on larger businesses that previously funded the scheme, smaller occupiers may experience tighter margins as a result.
Implications for property owners
Owners and occupiers of larger commercial properties should be particularly aware of the changes.
Properties with a rateable value above £500,000 will be subject to a super supplement, currently set at around 5.8 per cent. There is some mitigation, as the annual cap on transitional relief is increasing to 30 per cent.
However, the late publication of the new Rating List gives businesses limited time to assess the impact and adjust budgets accordingly.
Support for pubs and live music venues
Following criticism after the 2025 Budget, the Government has confirmed additional support for pubs and live music venues.
From April 2026, these venues will receive a 15 per cent reduction on their new business rates bills. This reduction will be frozen for two years, alongside a review of the valuation method used to assess these properties for business rates.
Preparing for the changes
With several moving parts, businesses should be reviewing their projected rateable values now and ensuring business rates are factored into cash flow forecasts.
It is also important to confirm eligibility for reliefs and transitional support, particularly where changes to rateable value or property use apply. Where there is uncertainty, seeking advice early can help avoid unexpected liabilities.
How Brown Butler can help
Brown Butler can support businesses and property owners in understanding how the business rates reforms will affect them. This includes reviewing forecasts, assessing eligibility for reliefs and helping businesses plan with confidence ahead of April 2026.
