"After seventeen months, rather than simplifying or easing business rates, the government has expanded and complicated the system." For retail, the landscape is more complex. RHL properties under £500k RV will receive lower multipliers, but many argue the small RHL multiplier (38.2p) offers an inadequate 5p discount when reductions of up to 20p were possible. Many will also lose reliefs entirely in April, meaning the new multiplier rates may not offset RV increases despite transitional support. And these will then taper over time. Given RHL relief also fell from 75% in 2024/5 to 40% in 2025/6, the increases many independent retailers and pubs will have experienced during a two-year period will be significant and hard to cope with. The higher multiplier for RVs above £500k affects around 3,480 RHL properties and disproportionately impacts London and the Southeast. Some relief comes from modest RV growth overall and a top multiplier (50.8p) lower than expected— previously at 55.5p. As a result, some large stores and food retailers may even see slight reductions in bills, though many depend on logistics facilities that have risen significantly in value.
New Multipliers announced in the Budget
From April 2026, the current two multipliers will be replaced by five, including two lower rates for Retail, Hospitality and Leisure (RHL) properties below £500,000 RV to compensate for the loss of this year’s 40% relief. These discounts will be funded by a higher multiplier for properties with RVs of £500,000 or more.
The new multipliers are:
RHL under £51,000 RV: 38.2p RHL £51,000–£499,999 RV: 43p Non-RHL under £51,000 RV: 43.2p Non-RHL £51,000–£499,999 RV: 48p All properties £500,000+ RV: 50.8p
City of London supplements and the 1p supplement for those without transitional relief also apply. Transitional caps will however limit increases between 5% and 30%, depending on property size, and the £110,000 cap on retail relief is removed. 2026 Rating Revaluation The revaluation uses April 2024 rental values, replacing the 2023 list which was based on rents in April 2021 during the pandemic. As a result, rateable values have risen sharply. Across England and Wales, cumulative RVs on 2.13 million entries have increased 19.2%, from £70.8bn to £84.4bn, with London up 22.3%. Film studios see the largest fall in RV (–26.7%), while civil airports face an extraordinary 295% rise and Royal Palaces 201%. Major sectors in England also rose: industrials +21.1%, offices +14.3%, retail +9.5%. Turnover-based valuations fare worst: hotels +76%, pubs +30%. These changes feed directly into liabilities. Many industrial properties will be pushed into the top multiplier—50.8p plus the supplement—resulting in major hikes in bills. Office outcomes vary: central London areas such as Mayfair (+33%), Kensington (+29%) and Fitzrovia (+24%) face steep increases, but 15 boroughs will see rises under 10% and six, including Canary Wharf and Shoreditch, will see reductions due to multiplier rebasing.
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THE LEGAL CORNER MAGAZINE | ISSUE 13 DECEMBER '25 HB
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