The recent Autumn Budget brought significant updates to business rates that will affect cash flow and investment decisions.
The changes may bring financial burdens that many did not expect and affect long-term planning.
Business owners and landlords should prepare for how the reforms will affect them and seek financial advice to create a clear strategy.
Reduction in the multiplier
The Government announced a reduction in the annual multiplier of between 11.7 per cent and 13.5 per cent, which is a steeper cut than expected.
Most businesses will see their bills rise due to increased rateable values (RVs) in the 2026 Rating List and additional supplements.
The Budget also revealed that a temporary 1p supplement will be added to the relevant tax rate in 2026/27 for properties not receiving transitional relief or Supporting Small Business relief.
What are the retail and leisure relief changes?
The Retail, Hospitality and Leisure (RHL) relief will fall again in 2026 – 2027 and only offer a 10 to 20 per cent relief depending on the RV.
This may come as a surprise to many operators and follows on from the 75 per cent to 40 per cent reduction introduced for 2025 – 2026.
Although the cuts reduce pressures on large property occupiers who were previously funding much of the relief, small high street businesses may be faced with tighter margins.
Will larger properties face higher costs?
Property owners will see the introduction of a supplement that will affect properties with an RV above £500,000, including big retail units and distribution centres.
The uplift will feed into supply chains and operational costs for many commercial tenants.
The 30 per cent cap on annual increases will make it easier to expand into larger properties, but the late publication of the new Rating List leaves businesses with only a few months to budget.
Forecasting finances will be more difficult for landlords, but with professional help, you can understand how your property is currently affected and budget accordingly.
How can the property market and businesses prepare?
Commercial property has been struck hard by these reforms, but there is no direct change to Council Tax or residential rates.
However, changes in commercial viability, such as high street pressures or increased logistical costs, may indirectly affect local economies and residential property demand over time.
With a new valuation cycle from April 2026 and relief structures changing, it is important to seek financial advice during these uncertain times.
Our professional team can help review projected rate liabilities and assess property ownership structures for tax efficiency.
We can help guide you on budgeting for high operating costs, especially for large commercial sites and prepare early for valuation.
Ensure you get ahead of these reforms and stay resilient in the changing property economy. Contact our accounting team today for expert support and guidance.
