Major reforms to England’s Business Rates system will come into force in April 2026, reshaping how commercial properties are assessed and charged. The changes aim to make the system fairer, supporting smaller firms while ensuring larger operations contribute proportionately.

Five new multipliers from 2026

Under current rules, there are two business rates multipliers based on a property’s rateable value (RV):

  • Small business multiplier: 0.499 for properties below £51,000 RV

  • Standard multiplier: 0.555 for properties at £51,000 RV and above

From April 2026, these will be replaced by five new multipliers, reflecting both business type and property size:

  • Small business RHL multiplier – retail, hospitality and leisure (RHL) premises below £51,000 RV

  • Small business non-RHL multiplier – non-RHL properties below £51,000 RV

  • Standard RHL multiplier – RHL premises between £51,000 and £499,999 RV

  • Standard non-RHL multiplier – non-RHL properties between £51,000 and £499,999 RV

  • Large property multiplier – all properties with an RV of £500,000 and above

According to North Northamptonshire Council, the new approach is designed to replace the annual RHL relief with a long-term framework, giving eligible businesses certainty while asking major occupiers — such as logistics hubs and national retailers — to pay a fairer share.

If inflation in September 2025 reaches 3.8%, the government expects the multipliers for 2026/27 to rise to around 0.518 for small businesses and 0.576 for standard properties, although final rates will be confirmed in the Autumn Budget 2025.

New valuations and transitional relief

The Valuation Office Agency (VOA) will carry out a nationwide revaluation based on rental values as of 1 April 2024, with the draft 2026 rating list due in October 2025. Property owners and occupiers will then have the chance to check their details and prepare for any appeals before April 2026.

The government is also expected to introduce a transitional relief scheme to smooth large changes in bills, helping ratepayers adjust to their new liabilities over time.

Supporting small businesses

Small Business Rate Relief (SBRR) will continue to apply where a single occupied property has a rateable value below £15,000, offering up to 100% relief for the smallest firms.

Businesses can find detailed guidance and sign up for updates via North Northamptonshire Council at northnorthants.gov.uk/business-rates, and through the Valuation Office Agency’s Business Rates Valuation Account at gov.uk/business-rates-valuation-account.

The summary of these local implications was shared via NNBN, highlighting the importance for Northamptonshire businesses to begin reviewing their properties and forecasting potential changes now.