This analysis covers office properties and the Business Rates implications of the 2025 Budget. For complete policy details, refer to the official Budget documentation.
The 2025 Budget, delivered by Chancellor Rachel Reeves, has confirmed a series of key changes to Business Rates and their associated reliefs. While much of the focus was placed on further reductions for the Retail, Hospitality, and Leisure (RHL) sectors, office occupiers face important changes with the 2026 revaluation.
Lower multipliers and transitional reliefs will soften immediate increases for some, but rising Rateable Values mean many businesses will still see higher bills.
To forecast your new Business Rates bill following the 2026 revaluation use our free calculator.
Key Takeaways
- New Multipliers: From April 1st, 2026, the standard multiplier falls to 48.0p and the small business multiplier falls to 43.2p.
- Revaluation Date: New Rateable Values will be used from April 1st 2026 and will be based on market evidence from 1st April 2024.
- Supporting Small Businesses (SSB) Extension: This relief caps the bill increase at £800 for 2026-2027 for those losing SBBR. Crucially, these claimants will also receive the final two years of the broader Transitional Relief scheme.
- Transitional Relief: A 3-year scheme will cap increases for all businesses, funded in part by a 1p surcharge on those seeing a rates decrease.
- Small Business Risk: The failure to increase the SBBR thresholds means many small office properties (especially those with current RVs between £12,000 and £15,000) will see their relief severely reduced or lost entirely.
The Multiplier Shift and the 2026 Revaluation
The next Business Rates revaluation takes effect from 1st April 2026. This revaluation used market rental evidence from 1st April 2024 to determine new Rateable Values (RVs) which have been released and can be found on the government website.
The Chancellor announced a reduction in the multipliers, which are often mistakenly assumed to guarantee lower rates. This adjustment is to align with the expected rise in property valuations across the market.
In addition to this, there will now be a high-value business rates multiplier for properties with rateable values of £500,000 and above. They will pay 2.8p above the national standard multiplier, making the high-value multiplier 50.8p in 2026-27.
2026 Multiplier Comparison Table
| Multiplier | Current Rate (2025/26) | New Rate (From 1st April 2026) |
|---|---|---|
| Small Business Multiplier | 49.9p | 43.20p |
| Standard Multiplier | 55.5p | 48.00p |
| High Value Multiplier | N/A | 50.80p |
In short: A lower multiplier applied to a significantly higher Rateable Value may still result in a higher Business Rates bill. We encourage all occupiers to check the new draft RVs, which are now live via the “find business rates” Government website.
The Small Business Rates Relief (SBBR) threshold freeze
A significant issue from the 2025 Budget was that there was no increase to the current Small Business Rates Relief (SBBR) thresholds. This presents a significant risk for the smallest office occupiers.
The current system grants:
- 100% relief for properties with an RV under £12,000.
- Tapered relief for properties with an RV between £12,000 and £15,000.
As property values rise in line with 2024 market rents, more businesses will see their RV move beyond the £12,000 lower threshold, and in many cases above the £15,000 upper threshold. This reduction in relief operates as a stealth tax, leaving the smallest businesses facing a sharp increase in their annual rates liability once the three-year transitional period ends.
Transitional and Supporting Reliefs
To mitigate the shock of sharp increases in the 2026/27 period, the Chancellor confirmed two key relief schemes:
- Supporting Small Businesses (SSB) Extension: This scheme is crucial for those properties that lose some or all of their SBBR entitlement due to the revaluation. The extension will cap the annual increase in their Business Rates bill to £800 for the 2026-2027 financial year. Crucially, claimants under this scheme will automatically receive the last two years of the Transitional Relief scheme as well.
- 3-Year Transitional Relief Scheme: All businesses facing an increase in their rates bill will be eligible for a new three-year transitional relief scheme. This mechanism places a cap on the maximum percentage increase in the bill, with the specific cap dependent on the property’s RV and whether it is located in London. To qualify for this relief your bill must increase by more than the percentage cap you qualify for (If you have a £19,000 RV you must have a 5.1% < Rates increase).
Transitional Relief Bands
| Rateable value | 2026 to 2027 | 2027 to 2028 | 2028 to 2029 |
|---|---|---|---|
| Up to £20,000 (£28,000 in London) | 5% | 10% plus inflation | 25% plus inflation |
| £20,001 (£28,001 in London) to £100,000 | 15% | 25% plus inflation | 40% plus inflation |
| Over £100,000 | 30% | 25% plus inflation | 25% plus inflation |
It should be noted that the transitional relief scheme is designed to be self-funding. Any business that does not qualify from SSB or Transitional Relief will be subject to a 1p surcharge on their multiplier to partially fund the relief for those facing increases.
To find the different Transitional Relief bands use the government website.
How to calculate my Business Rates bill from 2026?
To calculate your new Business Rates bill following the 2026 revaluation use our free Business Rates Relief calculator.
This will show you what you should have paid in 2025-2026, what you will be paying from 2026 – 2029+ including Transitional Relief, Supporting Small Businesses relief, and Small Business Rates Relief for commercial properties inside and outside of London.
Frequently Asked Questions
What is changing for office occupiers following the 2025 Budget?
The Budget confirmed new multipliers from April 2026, the introduction of a high-value multiplier, an extension to Supporting Small Businesses (SSB), and a new 3-year Transitional Relief scheme.
How will the 2026 revaluation affect my Business Rates bill?
Your new bill from April 2026 will be based on a Rateable Value set using 1 April 2024 rental evidence. Even though multipliers are falling, higher Rateable Values may still result in a higher bill.
What are the new multipliers from April 2026?
From 1 April 2026, England (outside London) will use multipliers of 43.2p for small business, 48.0p for standard, and 50.8p for high-value properties (RV £500,000+). London will use 45.2p for small business, 50.0p for standard, and 54.3p for high-value properties (These are just estimates based on last years premium).
What is the risk for small office occupiers?
Because SBBR thresholds were not increased, many smaller offices will lose some or all of their Small Business Rates Relief. Properties currently between £12,000 and £15,000 RV are most exposed.
How does the Supporting Small Businesses (SSB) extension work?
From 2026–27, businesses losing some or all of their SBBR due to revaluation will have their annual increase capped at £800. They will also automatically qualify for the final two years of Transitional Relief.
What is the new 3-year Transitional Relief scheme?
This scheme caps how much a rates bill can rise year-on-year for 2026–27, 2027–28, and 2028–29. Different caps apply depending on the Rateable Value and whether the property is in London.
Why is there a 1p surcharge for some businesses?
Businesses whose bills fall after revaluation will pay a 1p multiplier surcharge. This partially funds the transitional relief provided to those facing increases.
Will every business see lower bills because multipliers are falling?
No. The multiplier reduction is a technical adjustment. If your Rateable Value increases significantly in the 2026 list, your bill can still rise overall.
If you are an office occupier concerned about your new Rateable Value and are considering an office move as a result, please contact Canning O’Neill today for clear, commercial guidance.
