From 1 April 2026, the business rates system moved from two multipliers to five, with lower rates for retail, hospitality and leisure properties under £500,000 rateable value, funded by a higher rate on properties valued at £500,000 or more. In principle, this was designed to ease the burden on smaller premises and shift more of the cost toward large distribution and online retail sites.
In practice, many small businesses have seen bills rise rather than fall. The Federation of Small Businesses has calculated that RHL firms have faced an average 52% increase once the end of temporary pandemic-era relief and the 2026 property revaluation are factored in alongside the new multiplier. It has also flagged that around 104,000 small business premises were pulled into the rates system for the first time this year, because the £15,000 small business rate relief threshold has not moved in a decade. The British Chambers of Commerce has called the reform a welcome first step but says it does not go far enough, and is pushing for a single flat rate multiplier and annual revaluations to give businesses more certainty.
If your rates bill has increased this year, it is worth checking whether your premises fall within the small business rate relief threshold, and whether your rateable value reflects your current situation accurately, since this is an area where appeals and reliefs can still make a material difference.