Business Rates Relief for Hospitality, Retail & Leisure (England) – Updated for 2026

Business rates support for hospitality, retail and leisure has changed significantly since the COVID-era “rates holiday”.
The 100% relief that applied in 2020/21 has ended, and the government has moved to a new system from 1 April 2026
alongside the 2026 business rates revaluation.

What support applied in 2025–26 (and why it matters)

For the billing year 1 April 2025 to 31 March 2026, eligible retail, hospitality and leisure (RHL) properties in England could receive
40% off business rates, subject to a cash cap of £110,000 per business. This was applied via your council bill.

What changed from 1 April 2026

From 1 April 2026, the temporary 2025–26 RHL discount ended and support moved into the core calculation via new multipliers.
In simple terms: instead of a separate “discount scheme”, many qualifying hospitality/retail/leisure premises pay business rates using a
lower RHL multiplier.

New 2026–27 business rates multipliers (England)

The multiplier you pay depends on your rateable value and whether your premises qualifies as retail, hospitality or leisure.
As a guide:

• Small Business RHL multiplier (RV below £51,000): 38.2p
• Standard RHL multiplier (RV £51,000 to £499,999): 43.0p
• Small Business (non-RHL) multiplier (RV below £51,000): 43.2p
• Standard (non-RHL) multiplier (RV £51,000 to £499,999): 48.0p
• High-value multiplier (RV £500,000 and above): 50.8p

Important: to qualify for an RHL multiplier, premises are generally expected to be an occupied property that is open to visiting members of the public and
used wholly or mainly for qualifying retail, hospitality or leisure purposes (for example shops, restaurants/cafes, pubs/bars, hotels/guest accommodation, cinemas and leisure venues).

Extra help for pubs and live music venues (2026–27)

From 1 April 2026, pubs and live music venues can receive an additional 15% business rates relief for the 2026–27 billing year.
This relief is administered through local authorities, using government guidance to assess eligibility.

The government has also stated an intention to keep bills for pubs and live music venues frozen in real terms for the following two years (2027–28 and 2028–29).

Revaluation support: Transitional Relief and “Supporting Small Business”

Revaluations can cause sharp changes in bills. Two key mechanisms may help:

• Transitional Relief: limits how quickly bills can rise or fall following revaluation, so changes are phased in over time.
  If you qualify, the council applies this automatically on your bill.
• Supporting Small Business (SSB): additional help for smaller ratepayers who would otherwise see steep increases as relief changes.
  This has been expanded in connection with the 2026 revaluation and the move away from the 2025–26 RHL discount.

How to check what you should be paying

• Check your latest rates bill: your council bill usually shows the multiplier used and any relief applied.
• Confirm your rateable value: make sure the premises details are correct on the Valuation Office Agency (VOA) rating list.
• Query eligibility early: if your premises should qualify for an RHL multiplier (or pub/live music relief) but it is not shown on the bill, contact your local authority business rates team.
• Consider an appeal if needed: if your rateable value looks wrong, you may be able to challenge it via the VOA process.

Why this matters for hospitality

Many hospitality businesses are still feeling pressure from higher operating costs, while the 2026 revaluation can increase bills for some locations
even where a lower RHL multiplier applies. If business rates are contributing to cashflow stress, early action can preserve options.

Need help?

If business rates are causing financial strain, RMT can help you assess options and stabilise cashflow. This may include reviewing arrears pressures,
negotiating time to pay where appropriate, and exploring formal rescue solutions if needed.

Note: This page is general information and not tax or legal advice. Business rates and relief eligibility can vary by property and council policy. Always check your bill and confirm with your local authority.