Summary of Changes for 2026
Business Rates – Key Changes from 1 April 2026
A number of Government changes to Business Rates will take effect from 1 April 2026. These changes may affect how much businesses pay. This page provides a simple overview of what is changing, why, and what protections are in place for those facing increases.
How Business Rates Are Calculated
Business Rates are set nationally by Central Government. Councils are responsible for billing and collection but have very limited discretion over the amounts charged.
Your bill is calculated as:
Rateable Value (RV) × Multiplier – Reliefs = Amount Payable
- Rateable Value: Set by the Valuation Office Agency (VOA), based on estimated annual rental value at a specified valuation date.
- Multiplier: A pence‑in‑the‑pound figure set nationally.
- Reliefs: Government‑set schemes that reduce bills (e.g., Small Business Rate Relief, transitional protection).
1. National Revaluation of Rateable Values
A new national revaluation takes effect 1 April 2026, based on rental values as at April 2024.
You can check your current and future rateable value at: https://www.gov.uk/guidance/help-with-the-2026-business-rates-revaluation
Protections Against Large Increases
Government has introduced two schemes:
Transitional Relief (2026–2029)
This caps how much a bill can increase each year following revaluation. Increases are phased in over three years.
|
Rateable Value |
2026–27 |
2027–28 |
2028–29 |
|
Up to £20,000 (£28,000 London) |
5% |
10% + inflation |
25% + inflation |
|
£20,001–£100,000 |
15% |
25% + inflation |
40% + inflation |
|
Over £100,000 |
30% |
25% + inflation |
25% + inflation |
More info: https://www.gov.uk/business-rates-relief/transitional-relief
Supporting Small Business (SSB) Relief
For businesses losing Small Business Rate Relief due to the revaluation.
Bills will increase by no more than £800 per year, or the transitional cap (whichever is higher).
More info: https://www.gov.uk/business-rates-relief/supporting-small-business-relief
Do businesses need to apply?
No — the Council will apply these reliefs automatically when bills are issued in March.
2. New National Multipliers from 1 April 2026
Government is replacing the current system with five national multipliers based on sector and rateable value.
|
Category |
RV Band |
2026/27 Multiplier |
|
Small Business RHL |
<£51,000 |
38.2p |
|
Standard RHL |
£51,000–£499,999 |
43.0p |
|
Small Business (non‑RHL) |
<£51,000 |
43.2p |
|
Standard (non‑RHL) |
£51,000–£499,999 |
48.0p |
|
High Value (all sectors) |
≥£500,000 |
50.8p |
Government guidance on which businesses fall within the Retail, Hospitality & Leisure (RHL) category: https://www.gov.uk/guidance/business-rates-multipliers-qualifying-retail-hospitality-or-leisure
Businesses with RV below £500,000 have been sent a letter asking them to confirm their use.
All Businesses are urged to return these forms asp, so eligibility can be accurately assessed and the correct multiplier assigned. Alternatively, please contact the team at business.rates@thurrock.gov.uk
3. Ending of Retail, Hospitality & Leisure (RHL) Relief – 31 March 2026
The temporary 40% RHL Relief ends on 31 March 2026.
From April 2026, eligible RHL businesses will instead benefit from the lower RHL sector multipliers.
Protections Against Large Increases
Businesses losing RHL Relief may qualify for the expanded Supporting Small Business Relief. Bills will increase by no more than £800 per year, or the transitional caps.
4. Transitional Relief Supplement (2026/27 Only)
A 1p supplement will be added to multipliers for ratepayers not receiving Transitional Relief or SSB Relief.
The Government has introduced this to help fund the transitional protection schemes.
Businesses receiving protection from either Transitional or Supporting Small Business Relief will not pay the supplement.