Within their recently published Business Rates Information Letter, the government have confirmed details of the non-domestic rating multiplier and the small business non-domestic rating multiplier for England for 2025/2026.
In the Autumn Budget 2024, the Chancellor announced that the government would freeze the small business multiplier at 49.9p while uprating the standard multiplier by CPI inflation – the letter from the government’s Non-Domestic Rates Team serves to verify these rates:
- Non-domestic rating multiplier: 55.5p.
- Small business non-domestic rating multiplier: 49.9p.
Relief for retail, hospitality and leisure properties
Guidance has been published, setting out the eligibility criteria for the extended Retail, Hospitality and Leisure (RHL) Business Rates Relief scheme.
- The scheme provides eligible occupied RHL properties with a 40% relief;
- The total value of relief available per business, whether occupying one or more properties, is capped at £110,000; and
- Any ratepayer who would be eligible for a sum of relief above £110,000 if there were no cap in place, should be awarded relief up to the full value of £110,000 (as has been the policy for previous years).
The government expects local authorities to include details of the relief to be provided to eligible ratepayers for 2025/26 in their bills for the 2025/26 billing cycle.
Non-Domestic Rating (Multipliers and Private Schools) Bill
The Non-Domestic Rating (Multipliers and Private Schools) Bill has passed the final stages in the House of Commons and is now working its way through the House of Lords.
The measure to remove charitable rate relief from those private schools which are charities is expected to commence from 1 April 2025 – however, it has been outlined that bills should not be issued with the relief removed in advance of the enactment of the legislation.
Business rates – looking ahead
The outlined changes form part of the government’s fairer business rates system, a process that began with announcements at the Autumn Budget and is intended to continue for the next two years.
From April 2026, it is the intention to introduce two lower multipliers for RHL properties with rateable values (RVs) below £500,000. The government has set out its intention for these two new lower rates to be funded sustainably. To this end, the government also intends to introduce a higher multiplier for all properties with RVs of £500,000 and above. The rates for the new multipliers will be announced at Budget 2025.
The reforms set out above will take place alongside a routine business rates revaluation. The next revaluation is due to come into effect on 1 April 2026, based on RVs from 1 April 2024.