New business rates reforms to ease pressure on SMEs from 2026
The Government has announced a series of changes to business rates in England, set to take effect from April 2026. The updates include a £3.2 billion Transitional Relief scheme to cap bill rises for larger properties, alongside adjustments to multipliers and extended support for small business ideas. These measures were outlined in the Autumn Budget 2025 and aim to balance relief across different sectors.
From 1 April 2026, business rates bills will be recalculated based on the 2026 revaluation. The Government has lowered the small business multiplier to 43.2% and the standard rate to 48.0%. However, while retail, hospitality, and leisure properties face reduced multipliers, larger businesses will see higher charges to offset the difference.
The reforms aim to ease financial pressure on small and medium-sized enterprises while shifting some of the burden to larger firms. The £3.2 billion Transitional Relief scheme will limit sharp increases for bigger properties, and the extended support for small business ideas provides a further year of stability. Local authorities in selected regions will also gain greater control over retained business rates revenue.
