Business rates multipliers for 2027-28 set at 49.7p standard and 44.7p for small businesses
A government letter to councils in England sets out next year's rates in the pound, a two-year real-terms freeze for shops, pubs and leisure venues, and higher relief thresholds.
By Daily Oracles News Team2 min read
Councils in England now know the multipliers they will use to calculate business rates bills from 1 April 2027. The figures, published by the Ministry of Housing, Communities and Local Government in a letter to local authorities after the Budget on 28 October, are the rates in the pound applied to a property's rateable value.
The five multipliers for 2027-28 are:
- standard: 49.7p
- small business: 44.7p
- retail, hospitality and leisure, standard: 44.7p
- retail, hospitality and leisure, small business: 39.7p
- high value: 52.5p
Bills for shops, pubs and venues
For 2027-28 and 2028-29, bills for eligible retail, hospitality and leisure properties will rise by no more than CPI inflation. There is no rateable value ceiling on this cap. It is tested on 1 April each year, so a property that is empty on that date does not qualify, and it does not shield owners from increases caused by building improvements.
Relief for pubs and live music venues goes up from 15% to 35% for the same two years. Live music venues with a rateable value of £1m or more stay at 15%.
The Treasury says the overall package will leave half of all retail, hospitality and leisure properties paying no business rates.
Small business relief
The small business rate relief thresholds for retail, hospitality and leisure properties move up until 31 March 2029. Full relief will apply up to a rateable value of £18,000, against £12,000 now, tapering to nothing at £21,000, against £15,000. The Treasury estimates that this takes around 70,000 more of these businesses out of business rates altogether.
Ratepayers with more than one property also gain. The combined rateable value limit for keeping relief after taking on a second site becomes a single figure of £29,999 across England, replacing separate limits of £27,999 in London and £19,999 elsewhere.
Paying for it
A 1p transitional relief supplement on bills is being kept for 2027-28 and 2028-29. Vape shops lose access to small business rate relief and to the lower retail, hospitality and leisure multipliers.
The government will also consult this winter on a general anti-avoidance rule for business rates. Regulations and detailed guidance for councils will follow. Business rates are devolved, so these figures do not apply in Scotland, Wales or Northern Ireland.
