Business rates

Who needs to pay business rates

Business rates are charged on most non-domestic properties, like:

  • shops
  • offices
  • pubs
  • warehouses
  • factories
  • holiday rental homes or guest houses

You’ll probably have to pay business rates if you are the occupier of a building or part of a building for non-domestic purposes.

How we calculate your bill

Business rates are worked out based on your property’s ‘rateable value’ (RV).

This is its open market rental value on 1 April 2021, based on an estimate by the Valuation Office Agency (VOA).

You can estimate your business rates by multiplying the rateable value by the correct ‘multiplier’ (an amount set by central government).

There are currently 2 multipliers. There’s the:

  • small business multiplier – this applies if your business has a rateable value up to £50,999
  • standard multiplier – this applies if your business has a rateable value of £51,000 or above

From 1 April 2020 to 31 March 2021 the small business multiplier was 49.9p and the standard multiplier 51.2p.

From 1 April 2021 to 31 March 2022 the small business multiplier was 49.9p and the standard multiplier 51.2p.

From 1 April 2022 to 31 March 2023 the small business multiplier was 49.9p and the standard multiplier 51.2p.

From 1 April 2023 to 31 March 2024 the small business multiplier was 49.9p and the standard multiplier 51.2p.

From 1 April 2024 to 31 March 2025 the small business multiplier was 49.9p and the standard multiplier 54.6p.

From 1 April 2025 to 31 March 2026 the small business multiplier is 49.9p and the standard multiplier 55.50p.

Businesses in London with a rateable value over £75,000 also pay the Business Rate Supplement. This is charged by the Greater London Authority in relation to the Crossrail project.

You can find further information on the Mayor of London’s website.

Changes to business rates multipliers from 1 April 2026

From 1 April 2026, there will be 5 business rates multipliers. These will reflect both business type and property value.

New multipliers

The 5 multipliers for 2026 to 2027 are listed below.

Type of multiplier Who it’s for Multiplier value
Small business RHL multiplier Retail, hospitality and leisure (RHL) businesses with RV below £51,000 38.2p
Small business non-RHL multiplier Non-RHL businesses with RV below £51,000 43.2p
Standard RHL multiplier RHL businesses with RV between £51,000 and £499,999 43.0p
Standard non-RHL multiplier Non-RHL businesses with RV between £51,000 and £499,999 48.0p
Large property multiplier For all properties with RV of £500,000 and above 50.8p

Why these changes matter

The new system is designed to support local businesses. The new RHL multipliers will replace the annual RHL relief, which will give eligible businesses more long-term certainty.

It’ll also make sure larger organisations make fair contributions. A higher multiplier for large properties will mean that major distribution centres and online retailers contribute proportionately.

Transitional relief scheme

A transitional relief scheme will also be in place from 1 April 2026, which will limit the increase in bills.

Find out more about these changes, including how much your bill could increase by, on GOV.UK.

How we’re preparing

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

We may contact you for more information about your business.

How you can prepare

Get ready for the new system by:

Revaluation of rateable values for 2026

Every 3 years, the Valuation Office Agency updates the rateable values of commercial properties in England and Wales. This process is called a revaluation.

The next revaluation will come into effect on 1 April 2026.

To find out more about revaluation and check your rates, visit Revaluation 2026 – everything you need to know on GOV.UK.

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Advice

Page updated on: 22 December 2025

Business rates

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