Autumn Budget 2025: What the Business Rates Changes Mean for Landlords in 2026

By Verity Commercial Services

The Chancellor’s Autumn Budget delivered one of the most significant updates to the business-rates system in recent years. With a full revaluation taking effect from April 2026, new multipliers, support packages, and targeted reliefs, every commercial property owner will be affected; whether they hold a high-street retail unit or a large industrial asset.

At Verity, we’ve reviewed the Budget in detail. Here’s what today’s announcement means for landlords, asset managers and property professionals preparing for the year ahead.

1. A New Business Rates Revaluation Arrives in April 2026

To accompany the revaluation, the Chancellor announced that national tax rates will fall:

• Small business multiplier: 49.9p → 43.2p

• Standard multiplier: 55.5p → 48p

What this means:
Lower multipliers don’t guarantee lower bills. The real impact depends on the updated RV of each property. Many ratepayers will see reductions, but high-value assets and certain locations may still face increases driven by market movements between 2021 and 2023.

2. Permanently Lower Rates for Retail, Hospitality & Leisure

The Government has committed to a new, permanently reduced multiplier for eligible RHL properties with RVs below £500,000:

• 38.2p (small business RHL multiplier)

• 43p (standard RHL multiplier)

This reduction is designed to support high streets, town centres and tourism hotspots.

Impact for landlords:

More accessible rates for smaller RHL occupiers may improve demand and reduce vacancy across retail parades, cafés, gyms, salons and leisure spaces.

3. A New High-Value Multiplier for Large Commercial Assets

The Budget confirmed a new 50.8p high-value multiplier for properties with RVs of £500,000 or more.

This applies to large:

• Warehouses and industrial assets

• Logistics and distribution hubs

• Shopping centres and big-box retail

• Large office buildings

Impact:

Only around 1% of properties fall into this category – but the financial uplift is significant. Landlords with large assets should model the long-term liability increase and consider strategies to minimise empty-rates exposure.

4. Transitional Relief Will Cushion Sharp Increases

A redesigned £3.2bn Transitional Relief Scheme will phase in business-rates increases over a three-year period.

Annual caps on increases will apply as follows:

• Up to £20k RV: 5% → 10% → 25%

• £20k–£100k RV: 15% → 25% → 40%

• £100k+ RV: 30% → 25% → 25%

A one-year Transitional Relief Supplement will also apply to properties that do not receive relief.

Impact:

This scheme protects ratepayers facing substantial revaluation-driven jumps — but costs will still rise. Landlords should forecast multi-year exposure now, particularly for assets with RVs increasing sharply.

5. New Support for Small Businesses

Two Supporting Small Business (SSB) schemes were confirmed:

For those losing Small Business Rates Relief

Bills will increase by no more than £800, or the transitional cap, whichever is higher.

For those losing RHL relief

A three-year relief scheme worth £1.3bn will ease the shift back to standard business rates.

Impact:

Small occupiers — particularly high-street businesses — will be more stable and less vulnerable to sudden cost shocks, reducing the risk of premature lease surrenders.

6. Small Business Rates Relief Grace Period Extended

The Budget extends the SBRR “second property” grace period from 1 year to 3 years.

Impact:

Growing businesses expanding into additional premises retain relief for longer, supporting multi-site operators and improving take-up of smaller commercial units.

7. A Call for Evidence: Business Rates & Investment

The Government launched a consultation seeking views on:

• How business rates affect investment decisions

• The fairness and suitability of the Receipts & Expenditure valuation method

Impact:

This opens the door for further structural reform — particularly for specialised properties valued on R&E.

What This Means for Commercial Landlords in 2026

The business-rates landscape is shifting in ways that will create both challenges and opportunities:

• Large, high-value assets may face higher liabilities

• High-street and leisure operators gain permanent relief, supporting occupancy

• Revaluation may redistribute costs unevenly across portfolios

• Transitional relief provides temporary protection

• Vacancy risk becomes more expensive for large assets

Now is the time to assess exposure and adjust strategies ahead of April 2026.

How Verity Can Support You

Verity specialises in helping landlords navigate business-rates liabilities by mitigating empty rates exposure on their vacant spaces.

• Empty Rates Mitigation Schemes

• Facilities Management for vacant and occupied sites

Whether you’re preparing for the upcoming revaluation or assessing the long-term impact of the new multipliers, our team is here to support.

📞 0333 613 4583

📩 [email protected]

🔗 veritygroup.uk