On the 16th October, the Government provided another piece of the 2026 Business Rate Liability jigsaw, but with less than six months to go, other than some positive indicators for occupiers of “smaller” Retail, Hospitality or Leisure (RHL) properties, ratepayers remain in the dark in respect of this major occupational cost.

Aligning to their previously stated ambition to support the high street and encourage investment and jobs as set out in September’s policy paper (Business rates: forward look - GOV.UK) the Government yesterday provided further guidance, ahead of November’s Budget, on their proposals to introduce permanently reduced rates for Retail, Hospitality and Leisure properties (Business Rates Multipliers: Qualifying Retail, Hospitality or Leisure - GOV.UK).

Yesterday’s guidance provides only a partial picture, the key points being:

• The confirmation of the introduction of a small business RHL multiplier where RV is less than £51,000 and a standard RHL multiplier for RVs £51,000 to £499,999
• There will be no cash cap and as such all properties meeting the criteria will qualify for the lower multiplier
• Certain, detailed, criteria will be in place including:
  • The property must be occupied and wholly or mainly used for a qualifying purpose, i.e. RHL
  • The property must be wholly or mainly be used for providing RHL activity to members of the public, i.e. accessible to the public
  • Key classes are outlined and the guidance includes an extensive but not exhaustive list of eligible property types

Unhelpfully, the specific multipliers will be confirmed in the Autumn Budget (26th November) but are anticipated to follow the previously stated position of a reduction of up to 20p (40%).

Although a helpful step towards providing RHL ratepayers certainty on their potential liabilities from 1st April 2026 the guidance does not provide actual multipliers, without which accurate forecasting is not possible, nor draft Rateable Values, the other key piece of the jigsaw; in effect Government have merely reconfirmed their previously stated position of reducing rates for RHL properties.

The Autumn Budget will be presented on 26th November and shortly after that the detailed position will become clearer; the changes are significant in that we now know there will be differential rate poundages, we don’t know what these will be and to further complicate matters we anticipate a new scheme of Transitional Relief…all of which will increase complexity and uncertainty for ratepayers.

Occupiers of non-RHL properties gained no clarity from the guidance note and reflecting Governments position on fiscal neutrality and funding for the RHL discounts, for those in properties with Rateable Values in excess of £500,000 the sleepless nights will continue until the 26th November when the headache may begin.