Changes to business rates from 2026

Key legislative and relief details

Permanent changes

The Retail Hospitality and Leisure (RHL) multipliers are 5p lower than their national equivalents, providing a permanent tax cut for eligible properties, replacing temporary relief schemes.

Pubs and music venues

In addition to the RHL rates, eligible pubs and live music venues will receive an extra 15% relief in 2026/27, with bills frozen in real terms for 2027/28 and 2028/29.

Revaluation impact

The 2026 revaluation updates rateable values to current market conditions, which, combined with the new, lower multipliers, aims to reduce overall tax rates.

Business rates revaluation 2026

From 1 April 2026, your business rates bill will be based on new rateable values and updated business rates multipliers set nationally by the UK government.

These changes apply to all non domestic properties in Leeds.

Why values are changing

The Valuation Office Agency (VOA) reassesses non domestic properties every 3 years to ensure rateable values reflect current rental market conditions. For the 2026 revaluation, values are based on the property market as at 1 April 2024.

You can check current and future values at GOV.UK.

2026/27 business rates multipliers

The government will introduce updated multipliers from April 2026. The main multipliers will reduce, and additional multipliers will be introduced, including one for high value properties.

These multipliers apply nationally and are used by Leeds City Council when calculating business rates bills.

New 2026/27 business rates multipliers (effective from 1 April 2026)

Category	Rateable Value (RV)	2026/27 Multiplier
Small Business RHL	Below £51,000	38.2p
Small Business Non RHL	Below £51,000	43.2p
Standard RHL	£51,000 – £499,999	43.0p
Standard Non RHL	£51,000 – £499,999	48.0p
High Value Multiplier	£500,000 and above	50.8p

Reliefs and support available

Transitional relief

Transitional relief is designed to protect businesses from sudden changes in their business rates bill when new rateable values are introduced. It applies automatically to eligible properties.

When the 2026 revaluation takes effect, some properties will see their bills increase, while others will see reductions. Transitional relief helps smooth these changes over several years.

How transitional relief works

Transitional relief places limits (“caps”) on how much your bill can go up or down each year. These limits depend on:

• your rateable value
• whether your bill is rising or falling
• the year of the transitional period (the limits usually change annually)

This means that even if your rateable value changes significantly, the amount you pay each year will move gradually instead of all at once.

What transitional relief does

Effect on your bill	What the relief does
Bill increases	Puts a yearly limit on how much your bill can rise. This phases in any increase over several years to help with budgeting and financial planning.
Bill decreases	Limits the size of any immediate reduction. Your bill may still go down, but gradual phasing prevents large one off drops.

Key points for businesses

• You do not need to apply; transitional relief is automatically included in your bill if you qualify.
• The caps are set by the government each year and may change during the transitional period.
• Relief only applies to the change in your bill, not to the rateable value itself.
• If your circumstances change (for example, your property becomes empty), your transitional relief may also change or end.

Supporting Small Business (SSB) scheme

The Supporting Small Business (SSB) scheme helps ratepayers whose bills increase sharply because they are no longer eligible for Small Business Rate Relief (SBRR) after the revaluation.

This often affects businesses whose rateable value rises above the threshold where SBRR can be awarded.

How the SSB scheme works

The scheme places an annual cap on the increase to your bill, meaning:

• your bill cannot rise by more than the government set limit each year
• the cap applies for several years (the exact duration is set nationally)
• you will not immediately pay the full amount that would otherwise apply under the new valuation

What this means for your business

• Your bill increases in manageable steps, not all at once.
• You keep some of the financial support previously available under SBRR.
• Once your bill reaches the “normal” amount for your property, the scheme will end.

Like transitional relief, the SSB scheme is usually applied automatically if you qualify.

How your 2026 business rates bill will be calculated

From April 2026, your bill will be calculated as:

• Rateable value x Multiplier – Any reliefs you qualify for

Because both rateable values and multipliers are changing, bills may increase or decrease depending on your circumstances.

What you should do next

1. Check your property details

Sign-in to your Business Rates Valuation Account to confirm the property details held by the VOA.

You can request changes to your current valuation until 31 March 2026.

2. Review your future rateable value

The VOA will publish 2026 rateable values by 31 December 2025.

These will show the figure that will be used to calculate your 2026–27 bill.

3. Prepare for changes

If you expect your bill to rise, consider:

• checking which reliefs you may qualify for
• reviewing cashflow or budgeting plans
• contacting Leeds City Council for guidance

Early engagement can help avoid disputes or delays.