Yesterday’s Autumn Budget brought significant changes to business rates in England, including increased Small Business Rates Relief for retail, hospitality and leisure businesses, additional support for pubs, and new multipliers for 2027/28. However, the benefits are not being shared equally across all commercial property sectors — and the position in Wales is quite different.
For businesses already managing rising employment costs, energy bills and other operating expenses, business rates remain a significant overhead.
The Chancellor’s announcement on 28 October 2026 offers welcome relief to certain businesses, particularly those operating on the high street. However, industrial premises, warehouses, offices and many other commercial properties will not benefit from the same additional measures.
At Corporate Commercial Surveyors (CCS), we’ve examined the announcements and what they mean for businesses across England and Wales.
Small Business Rates Relief: A Significant Change for England
Perhaps the most important announcement for smaller businesses is the increase in the thresholds for Small Business Rates Relief (SBRR).
Currently, eligible businesses in England receive:
100% relief where their property’s rateable value is £12,000 or less.
Tapered relief where the rateable value is between £12,000 and £15,000.
No SBRR once the rateable value reaches £15,000.
From 1 April 2027, these thresholds will increase substantially — but only for qualifying retail, hospitality and leisure (RHL) properties.
Eligible RHL properties will receive:
100% relief for rateable values up to £18,000.
Tapered relief for rateable values between £18,000 and £21,000.
No SBRR once the rateable value reaches £21,000.
The existing qualifying conditions, including the rules for businesses occupying multiple properties, will continue to be relevant.
This represents a considerable improvement for eligible smaller high-street businesses. According to the Treasury, approximately 70,000 additional properties are expected to be removed from business rates liability altogether.
Small Business Rates Relief: A Significant Change for England
Perhaps the most important announcement for smaller businesses is the increase in the thresholds for Small Business Rates Relief (SBRR).
Currently, eligible businesses in England receive:
100% relief where their property’s rateable value is £12,000 or less.
Tapered relief where the rateable value is between £12,000 and £15,000.
No SBRR once the rateable value reaches £15,000.
From 1 April 2027, these thresholds will increase substantially — but only for qualifying retail, hospitality and leisure (RHL) properties.
Eligible RHL properties will receive:
100% relief for rateable values up to £18,000.
Tapered relief for rateable values between £18,000 and £21,000.
No SBRR once the rateable value reaches £21,000.
The existing qualifying conditions, including the rules for businesses occupying multiple properties, will continue to be relevant.
This represents a considerable improvement for eligible smaller high-street businesses. According to the Treasury, approximately 70,000 additional properties are expected to be removed from business rates liability altogether.
What does this mean in practice?
Perhaps the most important announcement for smaller businesses is the increase in the thresholds for Small Business Rates Relief (SBRR).
Currently, eligible businesses in England receive:
100% relief where their property’s rateable value is £12,000 or less.
Tapered relief where the rateable value is between £12,000 and £15,000.
No SBRR once the rateable value reaches £15,000.
From 1 April 2027, these thresholds will increase substantially — but only for qualifying retail, hospitality and leisure (RHL) properties.
Eligible RHL properties will receive:
100% relief for rateable values up to £18,000.
Tapered relief for rateable values between £18,000 and £21,000.
No SBRR once the rateable value reaches £21,000.
The existing qualifying conditions, including the rules for businesses occupying multiple properties, will continue to be relevant.
This represents a considerable improvement for eligible smaller high-street businesses. According to the Treasury, approximately 70,000 additional properties are expected to be removed from business rates liability altogether.
What About Offices, Warehouses and Industrial Properties?
For businesses operating from offices, factories, workshops, distribution centres and other non-RHL properties, the Budget offers considerably less direct support.
The Government has not extended the increased SBRR thresholds to these sectors.
Consequently, eligible non-RHL businesses in England will continue to operate under the existing thresholds:
| Rateable value | Small Business Rates Relief |
|---|---|
| £12,000 or below | 100% |
| £12,001–£14,999 | Tapered relief |
| £15,000 or above | No SBRR |
This means a small manufacturer occupying a workshop with a rateable value of £16,000 could face a business rates liability, while a qualifying retail business with the same rateable value could pay nothing.
Of course, the actual liability will depend on the applicable multiplier, any transitional arrangements and other reliefs.
Nevertheless, the underlying distinction is clear.
The Government has chosen to target additional support towards particular sectors rather than smaller businesses generally.
For businesses outside the RHL categories, ensuring that their rateable value is accurate will therefore remain particularly important.
Business Rates Multipliers: What’s Changing in April 2027?
A business rates multiplier is the figure used to calculate a property’s annual rates liability before any reliefs or adjustments.
In simple terms:
Rateable Value × Multiplier = Annual Business Rates Liability
The Government has confirmed the following multipliers for England:
| Multiplier | 2026/27 | 2027/28 |
|---|---|---|
| Small business (non-RHL) | 43.2p | 44.7p |
| Standard (non-RHL) | 48.0p | 49.7p |
| Small business RHL | 38.2p | 39.7p |
| Standard RHL | 43.0p | 44.7p |
| High-value properties | 50.8p | 52.5p |
These figures represent the amount charged per £1 of rateable value.
The small business multipliers generally apply to properties with rateable values below £51,000, while the high-value multiplier applies to properties with rateable values of £500,000 or more.
It is worth highlighting that all five published multipliers are increasing in April 2027.
For example, an office with a rateable value of £40,000 would have a basic annual liability of:
2026/27: £40,000 × 0.432 = £17,280.
2027/28: £40,000 × 0.447 = £17,880.
That’s an increase of £600 before considering any other adjustments.
However, a qualifying retail property with the same rateable value would use the lower RHL multiplier and may also benefit from the Government’s new protection against increases in bills.
The important point is that a lower multiplier does not automatically mean a lower bill than the previous year.
A Two-Year Real-Terms Freeze for Retail, Hospitality and Leisure
Another important announcement is the introduction of a two-year real-terms freeze for qualifying RHL properties in England.
For 2027/28 and 2028/29, increases in eligible business rates bills will generally be capped at the rate of Consumer Prices Index (CPI) inflation.
This is not an absolute freeze on the amount payable. Rather, it is intended to prevent bills from increasing faster than inflation under the relevant scheme.
There are also important exceptions, including certain increases in rateable value arising from property improvements and the expiry of other reliefs.
The protection is not subject to an upper rateable value limit, although properties must satisfy the relevant RHL eligibility requirements.
By contrast, offices, warehouses and industrial premises will not receive this additional RHL-specific protection, although existing transitional relief arrangements may still apply.
For businesses with larger property portfolios, this could create a meaningful difference in operating costs over the next two financial years.
Additional Support for Pubs, Social Clubs and Live Music Venues
The Budget also provides additional support for pubs, social clubs and qualifying live music venues in England.
From 1 April 2027, eligible properties will benefit from an increase in the relevant relief from 15% to 35%.
This support will apply during 2027/28 and 2028/29.
There is an exception for live music venues with rateable values of £1 million or more, which will retain the existing 15% relief rather than receiving the enhanced 35% rate.
For many smaller hospitality operators, the combination of lower RHL multipliers, increased SBRR thresholds and additional sector-specific relief could make a substantial difference to their annual liabilities.
England Versus Wales: Two Increasingly Different Systems
While yesterday’s Budget introduced additional measures for businesses in England, business rates are devolved in Wales.
This means the Welsh Government determines its own multipliers, relief schemes and eligibility criteria.
Businesses operating properties in both countries should not assume that the same rules apply across their portfolios.
Small Business Rates Relief in Wales
Wales currently operates significantly lower SBRR thresholds than England.
Eligible Welsh businesses receive:
100% relief for properties with rateable values of £6,000 or less.
Tapered relief for properties with rateable values between £6,000 and £12,000.
No SBRR for properties with rateable values above £12,000.
The Welsh scheme also has its own eligibility and multiple-property rules.
Crucially, the increase to £18,000 and £21,000 announced for qualifying RHL properties in England does not apply in Wales.
This creates a particularly noticeable difference between smaller businesses operating on either side of the border.
A qualifying English shop with a rateable value of £17,500 could receive 100% SBRR from April 2027.
An equivalent shop in Wales would not qualify for Welsh SBRR at that rateable value, although it may benefit from a reduced multiplier or other applicable support.
Welsh Business Rates Multipliers
Wales introduced a revised multiplier structure from 1 April 2026.
The published multipliers for 2026/27 are:
| Welsh multiplier | 2026/27 |
|---|---|
| Lower retail multiplier | 35.0p |
| Standard multiplier | 50.2p |
| Higher-value multiplier | 51.5p |
The lower retail multiplier applies to qualifying smaller and medium-sized retail premises with rateable values below £51,000.
The higher multiplier generally applies to properties with rateable values above £100,000.
Unlike England, Wales does not operate the same five-multiplier structure, and the thresholds and eligibility rules differ.
Wales Is Also Introducing Further Sector-Specific Support
It would, however, be incorrect to suggest that Welsh hospitality and leisure businesses are receiving no additional support.
The Welsh Government has separately announced plans to extend its lower-multiplier approach to qualifying hospitality and leisure properties with rateable values below £51,000 from April 2027.
This is intended to provide a permanent reduction in the multiplier applicable to eligible properties, rather than relying entirely on temporary annual relief schemes.
For 2026/27, qualifying food and drink hospitality properties in Wales can also benefit from 15% sector-specific relief, subject to the scheme’s conditions and financial limits.
The key difference is therefore not simply that England is offering support while Wales is not.
Rather, the two governments are pursuing different approaches, with different thresholds, multipliers and eligibility requirements.
For businesses operating across England and Wales, those differences could materially affect their annual property costs.
England and Wales: The Key Differences at a Glance
| Measure | England from April 2027 | Wales |
|---|---|---|
| Full SBRR for qualifying RHL | Up to £18,000 RV | Up to £6,000 RV |
| Tapered SBRR for qualifying RHL | £18,000–£21,000 | £6,000–£12,000 |
| Full SBRR for other eligible businesses | Up to £12,000 RV | Up to £6,000 RV |
| Reduced sector multipliers | Retail, hospitality and leisure | Retail, with hospitality and leisure extension planned |
| Additional two-year RHL bill protection | Yes, CPI-linked | Different transitional arrangements |
| Standard multiplier | 49.7p for 2027/28 | 50.2p for 2026/27 |
RV means rateable value. Welsh figures shown are the published 2026/27 position unless otherwise stated; the final 2027/28 multipliers and applicable regulations should be checked when available.
Why Reviewing Your Rateable Value Still Matters
While much of the Budget discussion has focused on reliefs and multipliers, there is another important factor in every business rates calculation: the property’s rateable value.
The rateable value is the starting point for calculating business rates liability.
It is also used to determine whether a property qualifies for certain reliefs or reduced multipliers.
This means that an inaccurate assessment could affect a business in more than one way.
For example, a qualifying retail property assessed at £18,500 may only receive tapered SBRR from April 2027.
If the evidence supports a reduction in its rateable value to £18,000, it could potentially become eligible for 100% relief, subject to the scheme’s conditions.
For offices, warehouses and industrial properties, where the new enhanced RHL reliefs are unavailable, ensuring the assessment is accurate is especially important.
Businesses should also remember that an increase in the multiplier does not necessarily mean their rateable value is correct.
The two are separate components of the business rates calculation, and each needs to be understood when reviewing liability.
What Should Businesses Do Now?
With the changes due to take effect in April 2027, businesses should take the opportunity to review their current position.
In particular, we would recommend:
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Checking your current rateable value. Ensure the assessment accurately reflects your property and its circumstances.
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Understanding your property’s classification. Confirm whether the premises qualify for the RHL arrangements or fall within the general commercial property categories.
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Reviewing available reliefs. Eligibility may change significantly from April 2027, particularly for smaller RHL businesses in England.
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Checking your projected liability. Businesses should consider the new multipliers alongside any applicable transitional relief and sector-specific protection.
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Considering whether an assessment should be challenged. Where there are grounds to question the rateable value, an appropriately supported challenge may help ensure the correct liability is being charged.
Our View: Welcome Support, but Not a Level Playing Field
The additional support announced for retail, hospitality and leisure businesses will undoubtedly be welcomed by many operators.
Increasing the SBRR thresholds for qualifying properties in England is a significant development, particularly for smaller businesses that have struggled with rising overheads.
However, the distinction between different types of commercial property is becoming increasingly pronounced.
An independent retailer may now qualify for complete relief at a rateable value that would leave a similarly sized office-based or industrial business facing a substantial annual bill.
Meanwhile, the different arrangements in England and Wales add another layer of complexity for businesses operating across both countries.
At Corporate Commercial Surveyors, we believe that businesses should understand not only which reliefs are available, but also whether their underlying property assessment is accurate.
Reliefs and multipliers may change as Government policy develops. An accurate rateable value remains fundamental to ensuring businesses are not paying more than they should.
How Corporate Commercial Surveyors Can Help
Corporate Commercial Surveyors specialises in reviewing commercial property assessments and representing businesses through the business rates challenge and appeal process.
Our experienced team works with businesses across England and Wales, including retail, hospitality, leisure, office, industrial and warehouse occupiers.
We can help businesses understand their current assessment, identify potential grounds for a challenge and navigate the relevant procedures.
While a reduction in rateable value cannot be guaranteed, a properly researched and evidenced review can help establish whether an assessment is fair and accurate.
Concerned about how the Budget could affect your business rates?
Contact Corporate Commercial Surveyors to discuss your property assessment and find out whether there may be grounds for a review.