From 1 April 2026, the UK Government is introducing significant changes to the way Business Rates are calculated in England. These updates will affect all commercial occupiers and are designed to make the system fairer, more proportionate, and more reflective of business type and property value.
Whether you’re an existing Sorbon Estates tenant or considering one of our commercial spaces, understanding these changes will help you budget effectively for the coming financial year.
What Are Business Rates?
Business Rates are a tax on most non‑domestic properties, including shops, offices, restaurants and warehouses. Your bill is calculated by multiplying your property’s rateable value (set by the Valuation Office Agency) by a multiplier set each tax year.
How to Estimate Your Business Rates
To work out your business rates:
- Find your property’s rateable value via the VOA (Valuation Office Agency).
- Multiply it by the appropriate multiplier (see below).
- Deduct any reliefs you are eligible for.
You can check your rateable value and estimate your bill at:
GOV.UK Business Rates Calculator (the official government service).
What’s Changing in 2026?
From April 2026, England is moving from a two‑multiplier system to five multipliers, reflecting not only property size but also business type, particularly retail, hospitality and leisure (RHL). These changes come alongside a national revaluation, meaning many properties will see updated rateable values.
The reforms aim to:
- Provide long‑term support for high street businesses
- Ensure larger, higher‑value properties contribute more
- Replace annual temporary reliefs with *permanent* adjusted rates for eligible sectors
Confirmed Business Rates Multipliers for 2026–2027 (England)
The Government has formally confirmed the multipliers for the 2026/27 tax year as follows:
Retail, Hospitality & Leisure (RHL) Properties
Small Business RHL – Below £51,000 – 38.2p
Standard RHL – £51,000 to £499,999 – 43.0p
Non‑RHL Businesses
Small Business (non‑RHL) – Below £51,000 – 43.2p
Standard (non‑RHL) – £51,000 to £499,999 – 48.0p
High‑Value Properties (All Sectors)
High‑Value Multiplier – £500,000+ – 50.8p
These values match the national multipliers published following the 2025 Autumn Budget.
What These Changes Mean for Businesses
If You Operate a Retail, Hospitality or Leisure Business
You may benefit from permanently lower multipliers, replacing the temporary RHL relief used in previous years. Eligibility depends on how the property is used, not just its VOA description. For example, the business must directly serve end‑customers.
If You Occupy a High‑Value Property
Properties with a rateable value of £500,000 or above will be subject to the new higher multiplier, ensuring large-scale operations contribute proportionately.
Businesses Facing Higher Bills
A redesigned Transitional Relief Scheme, worth £3.2 billion, will phase in increases over the next three years to soften sudden bill rises.
What Prospective Sorbon Estates Tenants Should Do Now
Check Your Future Rateable Value
Rateable values taking effect from April 2026 are already available. Reviewing them early helps inform your budgeting.
Determine Whether You Qualify for RHL Multipliers
If your business operates in retail, hospitality or leisure, you may benefit from lower multipliers from April 2026.
Factor Business Rates Into Occupancy Costs
When assessing one of our commercial units, understanding the likely rates bill is essential to forecasting your overheads.