For all areas taxation, it's been a long time coming - tomorrow the UK Budget will be presented before Parliament. The Chancellor will set out plans to meet the promises to cut the cost of living, cut NHS waiting lists, and cut the national debt.

With the Business Rates property tax, we have paused to confirm the announcements 12 months ago (and with less than 4 months before the start of the 2026 list). 

The Chancellor confirmed 12 months ago a commitment to permanently lower multipliers for Retail, Hospitality and Leisure properties. 

What we know - The multipliers

The Autumn Budget in October 2024 introduced a framework of new charging multiplier(s) from 1 April 2026 as follows:

• Two lower small business multipliers – properties under £51,000 RV – a split distinction between Retail, Hospitality and Leisure (RHL) and Non RHL
• Two medium multipliers - £51,000 RV up to £500,000 RV - again a split distinction between Retail, Hospitality and Leisure (RHL) and Non RHL
• The highest multiplier - all properties above £500,000 RV

The multipliers will be confirmed in the Autumn Budget tomorrow. 

Uncertainty remains until the Draft 2026 Rating List is published by the Valuation Office Agency and transitional relief and the supplement additions are announced.
 

What we don’t know

We do not have the Draft 2026 Rating List (and new Rateable Values) to provide some certainty or clarity on future liabilities. 

We do not have an outline as to the transitional relief scheme, phasing upwards or downwards of liability, which will have to accommodate the new multiplier framework.

While some of these will be included in the Budget release on Wednesday, there is room for further uncertainty.

The loss of retail relief and continued support for the high street

For Retail, Hospitality & Leisure property, a relief has been in place (for those eligible) since 2020. It will be removed from 1 April 2026 and replaced with the new lower RHL multipliers, for eligible RHL properties. 

We provided commentary as to qualification criteria last month – see the full article here.

Final commentary

Labour outlined in its manifesto, a commitment to reform Business Rates - there was uncertainly for all UK businesses generated by the Budget last year.

We have previously outlined there is a need to set an achievable roadmap, through to April 2029 and the next revaluation, for clear reform and provide UK business with certainty and confidence. To find out more, please read this article.

We will be tuning in to understand and provide clarity as to consequences of this new UK Budget.