From next month, business rates bills in England will be reshaped by new multipliers that create clear winners and losers among ratepayers.
Small and standard multipliers will fall, but a new high value band is set to hit larger assets harder.
Under current plans, the small business multiplier drops from 49.9p to 43.2p, while the standard multiplier falls from 55.5p to 48.0p. On paper, that sounds like good news for many ratepayers, especially smaller occupiers already squeezed by energy, labour and borrowing costs. But the introduction of a new high value multiplier – set 2.8p above the standard rate – means bigger hereditaments will shoulder a greater share of the burden.
For owners and occupiers of large retail, logistics, city centre offices and certain leisure assets, that uplift could more than offset any benefit from the headline rate cuts. The effective message is that the system will ask more from those with the highest rateable values, while offering some respite at the lower end of the tax base.
This sits against the backdrop of the government’s recent business rates reform consultation, which has now closed. Industry bodies used the process to call for bolder, more fundamental simplification – from easing relief “cliff edges” to exploring alternatives to property based taxation altogether. Many argued that tweaks to multipliers and reliefs, however welcome, fall short of the structural change needed to support long term investment and growth.
Ministers, for their part, have signalled that any significant reform will be a multi year journey across this Parliament, running through to 2029. That leaves ratepayers facing a familiar dilemma: plan on the basis of the system as it stands today, while knowing that further adjustments, consultations and political trade offs are likely before the end of the decade.
For businesses making real estate decisions now – new leases, relocations, redevelopments or consolidations – the practical risk is sleepwalking into higher liabilities. Asset size and rateable value will matter more than ever in determining whether you sit in the “winner” or “loser” camp under the new multipliers.
At Dunlop Heywood, we are already modelling the impact of the 2026 changes across portfolios and individual sites, highlighting where exposure to the high value multiplier could erode margins. If you would like to understand how the new structure might affect your next letting, development or rent review, our team can help you quantify the impact – and identify opportunities to reduce your rates bill before the changes bite.
