As the Chancellor prepares to deliver the Autumn Budget, ratepayers are anticipating one of the most technical sets of business rate changes in recent years. With the 2023 list entering its final months and the 2026 list approaching, this Budget will shape liabilities for years ahead.
Goodman Nash has reviewed the available signals and outlines below what we expect to see.
Multipliers: a shift to 5–6 rates
The current small and standard multipliers stand at 49.9p and 55.5p.
For the new list, we anticipate five, possibly six, separate multipliers to accommodate:
- small properties
- standard properties
- large properties over £500k RV
- and the retail, hospitality & leisure (RHL) reduction
Key questions include:
- Where will the new standard multiplier be set?
- How high will the supplement multiplier rise for properties with an RV of over £500k?
- Which sectors will be included or excluded from the premium that funds retail relief?
This represents one of the most significant structural changes in recent cycles.
GN view: The introduction of multiple multipliers will reshape how liabilities are calculated. Understanding which multiplier category a property falls into and whether it is captured by the large property supplement will be key to accurate budgeting for 2026 onwards.
Transition: no downward phasing, and a new structure for upward caps
We expect confirmation that no downward phasing will apply for the 2026 list. This means that any reductions in rateable value should be felt in full from 1 April 2026, without being phased in over several years.
The Government is also redesigning the upward phasing rules to accommodate the new system of five or more multipliers.
The exact structure has not yet been confirmed, but it is expected to include revised caps on how quickly liabilities can increase for properties whose rateable values rise.
GN view: These changes may alter how liabilities evolve over the life of the list. Understanding the new cap structure early will be important for budgeting and forecasting.
Draft 2026 Rating List: due a few days after the Budget
The draft list is expected shortly after the Budget, typically within several days.
Early indications suggest notable movements in certain sectors, including those that rebounded strongly post-COVID.
Businesses will need to factor these new figures into budgets ahead of 1 April 2026, when new bills take effect.
GN view: Early review of draft valuations remains critical. Identifying issues at the draft stage can make subsequent processes smoother and more effective.
Reliefs and policy adjustments
Retail, Hospitality & Leisure (RHL) Relief
We expect a reduction equivalent to around 40%.
The limits have already been removed; the focus now is on the new ruleset and the size of the large property multiplier that will fund the relief.
Duty to Notify / Duty to Inform
We may see further reference to the rollout ahead of its soft launch in 2026. This will increase reporting requirements for all ratepayers, including those currently receiving 100% small business relief.
Improvement Relief
No major change is expected. Uptake has been limited, and reform remains overdue.
GN View: Reliefs remain an important element of the business rates system, but the shift to a multi-multiplier structure may alter how they are funded and applied. Large properties, in particular, will need to watch the details closely once final multipliers are released.
Preparing for change
The business rates system is becoming increasingly complex — but complexity often brings opportunity.
Goodman Nash continues to support clients by:
- Closing outstanding opportunities on the 2023 list
- Reviewing draft 2026 valuations as soon as they are published
- Forecasting liabilities under the new multipliers and transition rules
If you’d like our team to review your current position or assist with planning for April 2026, please get in touch.