Business Rates Multipliers 2025
Starting in April 2025, significant changes to business rates multipliers in England will impact various sectors. Our specialist business rates surveyors assess what’s coming for businesses in the 2025 adjustments.
Here’s an overview of the upcoming adjustments:
- Freezing the Small Business Multiplier:
The small business multiplier, which applies to properties with a rateable value below £51,000, will remain frozen at 49.9p for the 2025/26 financial year. This decision aims to protect over a million properties from inflationary increases, ensuring stability for small businesses.
- Adjusting the Standard Multiplier:
The standard business rates multiplier, applicable to properties with a rateable value of £51,000 or more, will be increased from 54.6p to 55.5p in 2025/26. This adjustment reflects the government’s response to economic conditions and is intended to support public finances.
- Retail, Hospitality, and Leisure Relief Scheme:
For the 2025/26 financial year, the Retail, Hospitality, and Leisure (RHL) Relief Scheme will provide eligible businesses with a 40% reduction in their business rates bills, up to a cash cap of £110,000 per business. This temporary measure is designed to support these sectors during the transition to permanent changes in 2026.
- Permanent Changes from April 2026:
Looking ahead, the government plans to implement permanent lower multipliers for RHL properties with a rateable value below £500,000, starting in April 2026. These reductions will be funded by higher multipliers for properties with a rateable value of £500,000 and above, including large distribution warehouses. This approach aims to create a fairer business rates system by providing targeted relief to smaller businesses while ensuring that larger properties contribute appropriately.
Implications for Businesses:
These changes are expected to have varying impacts across different sectors:
Small Businesses: The freeze on the small business multiplier offers immediate relief, maintaining stability for small enterprises.
Retail, Hospitality, and Leisure Sectors: The 40% relief in 2025/26 provides temporary support, with permanent reductions anticipated from 2026.
Large Businesses: The increase in the standard multiplier and the introduction of higher multipliers for larger properties may result in higher business rates bills for larger enterprises.
It’s important for businesses to stay informed about these changes and assess how they may affect their operations and financial planning.
Please do get in touch if you have any questions on this, or any other business rates matters: [email protected]
