HMT announces changes to business rates policy in the Autumn Budget

• HMT has set multipliers based on the outcomes of the business rates 2026 revaluation;
• HMT has reduced the small business and standard rate multipliers from 49.9 percent to 43.2 percent and 55.5 percent to 48.0 percent respectively. In addition, lower multipliers for RHL properties are balanced by higher multipliers for large businesses (RV over £500,000); and
• Although business rates multipliers for large businesses are higher than the standard multiplier, these represent a decrease from 2025/26. A comparison table is shown below.

• A £3.2 billion Transitional Relief scheme providing more generous support to the largest ratepayers, including airports and hospitality;
• HMT released details of this transitional relief scheme that limits bills increases to 30 percent for the first year and 25 percent (plus inflation) for the following two years for properties with RV over £100,000 - this is an improvement to the existing scheme. For smaller properties, transitional relief remains the same as in 2023;
• HMT has also expanded the 2026 Supporting Small Business scheme and extended the 2023 scheme by one year;
• The transitional relief scheme is funded by a 1p supplement to the relevant tax rate for ratepayers who do not receive Transitional Relief or the Supporting Small Business; and
• Film studios relief remains at 40 percent and will be maintained until 2034. 

To support regeneration and growth in particular areas, HMT has improved or extended the business rates retention system for local authorities in areas such as West Yorkshire, Cornwall and the North East.

The Government has also published a Call for Evidence on the role business rates play in investment. It seeks feedback on the impact of business rates (particularly the Receipts and Expenditure valuation method) on incentives to invest.

If you wish to understand the impact of business rates policy changes on your business, we would be happy to discuss this with you. KPMG is in a unique position to provide support. Our combination of regulatory, industry and business rates experience means that we are well equipped to assist with estimating the impact of business rates policy changes on your business.