UK Business Rates 2026: What retail, hospitality and leisure businesses need to know

The end of temporary relief

Since the pandemic, many RHL businesses have benefited from business rates discounts. These relief schemes helped companies manage rising costs and reduced customer demand. However, the current relief programme will end on 31 March 2026.

New property valuations from 2026

Business rates are based on a property’s “rateable value,” which reflects its estimated rental value. From April 2026, new valuations will come into effect following a national review carried out by the Valuation Office Agency.

These updated valuations are based on market conditions as of April 2024. As a result, some businesses may see higher bills if rental values in their area have risen, while others may benefit from reductions if values have fallen.

It is important for businesses to review their new rateable value carefully and seek advice if they believe it is inaccurate.

New multipliers explained

From 2026, the government will introduce a new system of business rates multipliers. These are the figures used to calculate how much tax is paid on a property.

Smaller RHL businesses are expected to benefit from lower multipliers, which should help ease the tax burden on high street operators. Larger properties, however, may face higher multipliers, meaning increased costs.

While this change is designed to provide more certainty than short-term relief schemes, the overall impact will depend on individual property values.

Increased hospitality sector support

In a welcome move, after reviewing their position, the government announced a targeted business rates support package for the hospitality industry.

Under this revised approach, pubs and some live music venues will receive a 15% discount on their business rates from April 2026, followed by a freeze on further increases for two years.

While this move has been welcomed by those businesses, many restaurants, cafés and leisure operators feel the support does not go far enough.

What should businesses do now?

With these changes approaching, businesses should take practical steps now. This includes reviewing property valuations, checking eligibility for relief schemes, budgeting for possible increases and reviewing lease terms where tenants are responsible for rates payments.

If you're a business owner and would like to discuss these changes further, contact Amit Bhangham, Partner in our Commercial Property team and Head of Thackray Williams' Retail Hospitality & Leisure Sector, on amit.bhangham@thackraywilliams.com.