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Campaigns / Business rates

Business rates reform – What businesses in England need to know

August 27, 2025

Part of UKHospitality's #TaxedOut Budget campaign

What's changing from April 2026

The Government is introducing major changes to business rates in England. This is a significant step forward and reflects years of UKHospitality campaigning with all political parties.

  • New reduced multipliers (tax rate) will apply permanently to retail, hospitality and leisure properties. This will mean up to a 20p discount in the pound for properties with a rateable value (RV) under £500,000.

  • Existing reliefs, such as RHL relief, are expected to fall away – but there will be no cap on the new reduced rate.

  • There will be at least three new bands:

    Under £51k RV – up to 20p discount
    £51k–£500k RV – up to 20p discount
    Over £500k RV – potentially one or more surcharges, up to 10p in the pound

  • The reforms are designed to be revenue neutral – with surcharges funding the discounts.

This is a big win for hospitality, which has long been over-taxed compared to other sectors. But there are still significant risks.

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