From April 2026, the UK Government will introduce significant changes to how Business Rates is calculated. These changes may affect the amount that you pay.

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

Key summary of changes:

• Autumn Budget 2025 Business Rate relief package.
• Retail, hospitality and leisure relief (RHL) ends on 31st March 2026.
• New non-domestic rates multipliers to be introduced from 1st April 2026.
• Revaluation 2026.

Budget 2025 business rates relief package

At the Autumn Budget on 26th November 2025, the Chancellor announced a package of measure which provides support to businesses in England.

• Non-Domestic Rates multipliers for 2026/2027
• Transitional relief scheme
• Supporting Small Business scheme
• Extending the Small Business Rate Relief grace period
• 100% relief for Eligible Electric Vehicle Charging Points and Electric Vehicle only forecourts.

Business Rates Multipliers: qualifying retail, hospitality or leisure (from 2026)

As announced at Autumn Budget 2024, in April 2026, the government will replace retail, hospitality and leisure relief with two lower business rate multipliers for properties with rateable values below £500,000.

Mid Devon District Council will be responsible for determining which properties are eligible for these multipliers in line with government guidance.

 

The new multipliers from April 2026:

1. Small business RHL multiplier of 38.2p - Retail, hospitality and leisure (RHL) businesses with RV below £51,000
2. Small business non-RHL multiplier of 43.2p -  Non-RHL businesses with RV below £51,000
3. Standard RHL multiplier of 43.0p - RHL businesses with RV between £51,000 and £499,999
4. Standard non-RHL multiplier of 48.0p Non-RHL businesses with RV between £51,000 and £499,999
5. Large property multiplier of 50.8p - For all properties with RV of £500,000 and above

Multipliers are shown in pence per pound of rateable value (RV).

Transitional Relief

To support ratepayers facing large bill increases at the revaluation the government is introducing a redesigned Transitional Relief scheme worth £3.2 billion. 

Transitional Relief supplement

A 1p supplement to the relevant tax rate for ratepayers who do not receive Transitional Relief or the Supporting Small Business scheme to partially fund Transitional Relief. This will apply for one year from 1 April 2026.

2026 supporting small business scheme

Bill increases for businesses losing some or all of their small business rates relief or rural rate relief will be capped at the higher of £800 or the relevant transitional relief caps from 1 April 2026. The 2026 SSB relief scheme has been expanded to ratepayers losing their RHL relief. The government has also announced a one-year extension of the 2023 Supporting Small Business scheme from 1 April 2026. This support is applied before changes in other reliefs and local supplements.

Extending the Small Business Rates Relief (SBRR) grace-period from one to three years

Businesses will now keep their Small Business Rates Relief on their first property for three years after they take on a second property, instead of just one year.

100% relief for eligible vehicle charging points and electric vehicle only forecourts (EVCP relief)

A ten-year 100% business rates relief for EVCPs separately assessed by the VOA and Electric Vehicle only forecourts to ensure that they face no business rates liability.

The regulations will be laid down in due course.

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.

How we’re preparing

We’re reviewing our property database to determine which multiplier applies to each business. We’ll 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

Business Rates 2026 revaluation

Every three years, the Valuation Office Agency (VOA) updates the rateable values of over 2 million commercial properties in England and Wales. This process is called a revaluation; it is intended to ensure business rates reflect changes in the property market.

The next revaluation comes into effect on 1 April 2026, using market values determined as of 1 April 2024.  Please visit Find a business rates valuation for more information.

Challenging your business rates valuation:

A challenge against your rateable value can be made by raising a check case. This can be done here

What is a rateable value?

It’s the estimated annual rent your property could have been let for on the valuation date. It is not the same as the rent you currently pay. Mid Devon District Council uses these rateable values to calculate your business rates bill.

Following completion of the revaluation, the VOA will publish a full list of all non-domestic properties.