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Business Rates Revolution: What Retail, Hospitality & Leisure Owners Must Know for 2026-27
England’s business rates system is being overhauled from April 2026 — new multipliers, reliefs and revaluation will reshape your tax bill.
By NomadicTax Research Team • 5-8 min read • April 7, 2026
## Overview of the Rates Reform
From **1 April 2026**, significant changes to the **Non-Domestic Rating System (business rates)** in England will take effect. These involve:
- A **revaluation** of rateable values (RV) to update property assessments.([gov.uk](https://www.gov.uk/government/publications/business-rates-forward-look/business-rates-forward-look?utm_source=openai))
- Introduction of **new multipliers**: lower rates for **Retail, Hospitality & Leisure (RHL)** properties under £500,000 RV, and a **high-value multiplier (HVM)** for properties £500,000 and above.([gov.uk](https://www.gov.uk/government/publications/52025-confirmation-of-budget-package-and-the-non-domestic-rating-multipliers-for-20262027/52025-confirmation-of-budget-package-and-the-non-domestic-rating-multipliers-for-20262027?utm_source=openai))
- Reduced **standard multiplier** and **small business multiplier** rates.([gov.uk](https://www.gov.uk/government/statistics/national-non-domestic-rates-collected-by-councils-in-england-forecast-2026-to-2027/national-non-domestic-rates-collected-by-councils-in-england-forecast-technical-notes?utm_source=openai))
- A **£4.3 billion package of relief and transitional support** to cushion businesses affected by revaluation.([gov.uk](https://www.gov.uk/government/news/budget-2025-fact-sheet-tax-support-for-businesses?utm_source=openai))
## Key Multipliers in Detail
| Property Type | Rateable Value Range | Multiplier 2026-27 |
|---------------|------------------------|----------------------|
| Non-RHL properties, RV < £51,000 | Small business multiplier | **43.2p** ([gov.uk](https://www.gov.uk/government/statistics/national-non-domestic-rates-collected-by-councils-in-england-forecast-2026-to-2027/national-non-domestic-rates-collected-by-councils-in-england-forecast-technical-notes?utm_source=openai)) |
| Qualifying RHL properties, RV < £51,000 | Small RHL multiplier | **38.2p** ([gov.uk](https://www.gov.uk/government/statistics/national-non-domestic-rates-collected-by-councils-in-england-forecast-2026-to-2027/national-non-domestic-rates-collected-by-councils-in-england-forecast-technical-notes?utm_source=openai)) |
| Qualifying RHL properties, RV £51,000–£499,999 | Standard RHL multiplier | **43.0p** ([gov.uk](https://www.gov.uk/government/statistics/national-non-domestic-rates-collected-by-councils-in-england-forecast-2026-to-2027/national-non-domestic-rates-collected-by-councils-in-england-forecast-technical-notes?utm_source=openai)) |
| Non-RHL properties, standard size (RV £51,000–£499,999) | Standard multiplier | **48.0p** ([gov.uk](https://www.gov.uk/government/statistics/national-non-domestic-rates-collected-by-councils-in-england-forecast-2026-to-2027/national-non-domestic-rates-collected-by-councils-in-england-forecast-technical-notes?utm_source=openai)) |
| Properties with RV ≥ £500,000 | High-Value Multiplier | **50.8p** ([gov.uk](https://www.gov.uk/government/statistics/national-non-domestic-rates-collected-by-councils-in-england-forecast-2026-to-2027/national-non-domestic-rates-collected-by-councils-in-england-forecast-technical-notes?utm_source=openai)) |
## Who Gains and Who Loses?
**Potential Gains**
- Retail, hospitality & leisure (RHL) businesses with smaller properties receive a **reduced multiplier**, lowering bills significantly.\
- Very small non-RHL businesses also benefit from decreased small business multiplier.\
- Transitional and Supporting Small Business (SSB) reliefs will limit bill increases during the change.([gov.uk](https://www.gov.uk/government/publications/52025-confirmation-of-budget-package-and-the-non-domestic-rating-multipliers-for-20262027/52025-confirmation-of-budget-package-and-the-non-domestic-rating-multipliers-for-20262027?utm_source=openai))
**Potential Downsides**
- Owners of large properties (RV ≥ £500,000) will face the higher HVM — their business rates will rise relative to previous standard multipliers.\
- Some businesses currently enjoying relief may see eligibility narrowed or relief reduced.\
- Revaluation may result in formerly lower-rated properties moving into higher bands.
## Actionable Advice for RHL Business Owners
- **Check your RV and property size**: determine whether you fall under RHL, the size bands, or HVM.\
- **Estimate your new bill**: multiply your RV by the applicable new multiplier.\
- **Investigate reliefs and transitional schemes**: see whether you're eligible for small business, RHL relief, or other caps.\
- **Budget for increases**: if in scope for HVM, prepare for higher bills from April 2026.\
- **Work with your local authority**: understand discretionary reliefs, application timelines, and payment cycles.
## Example
Imagine *Louise* operates a small pub (RHL property) with a rateable value of **£40,000**. Under the old system, she might have paid using the standard multiplier of ~49.9p. Under the new small RHL multiplier of **38.2p**, her bill will drop, maybe in thousands of pounds per year, depending on RV. Conversely, *Alan* owns a warehouse with RV £600,000. He’ll now pay using the HVM rate of **50.8p**, significantly more than before.
## Conclusion
These business rates reforms mark a turning point for high-street properties. If you’re in retail, hospitality or leisure, the multipliers could reduce your tax burden substantially — but only if you know where your property sits under the new bands. Property owners with large RVs must plan carefully for increased costs. The revaluation and transition reliefs give room to adapt — make sure you take full advantage.