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Business rates review for hospitality operators after the April 2026 changes.

From 1 April 2026, Retail, Hospitality and Leisure relief is no longer available for new claims. Hospitality operators now calculate their business rates bill using revised rate multipliers set specifically for RHL-category properties. For operators who have been relying on an annual relief application, the 2026-27 bill will look different and must be checked against the correct multiplier for your rateable value. Separately, Small Business Rate Relief continues and many small cafes, takeaways and pubs qualify for 100% relief but have never claimed it.

Ended
Retail, Hospitality and Leisure relief for new claims from 1 April 2026. Revised rate multipliers apply instead (gov.uk).
100%
Small Business Rate Relief available for properties with a rateable value of £12,000 or below, where it is the only property the business uses (gov.uk). Tapers to zero at £15,000.
38.2p / 43p
England 2026-27 multipliers for RHL properties: 38.2p in the pound for rateable values below £51,000; 43p for £51,000 to £499,999 (gov.uk, England only).

The challenges operators face.

RHL relief has ended for new claims from April 2026

GOV.UK is explicit: 'You cannot make a new claim for retail, hospitality and leisure relief. From 1 April 2026, you will need to use rate multipliers to calculate your business rates bill.' The RHL scheme ran at varying percentages and annual cash caps in previous years. Those rates no longer apply for new claims from this date. Operators who see content quoting a live RHL relief percentage for 2026-27 are reading stale information.

Revised multipliers apply in 2026-27 (England)

In England, RHL-category properties now pay a revised multiplier that sits below the national standard rate. For 2026-27: 38.2p in the pound for rateable values below £51,000; 43p for rateable values from £51,000 to £499,999; properties at £500,000 or above pay 50.8p (gov.uk, checker-verified, England only). Scotland and Wales operate different non-domestic rates regimes; figures for those nations are not stated here. Your 2026-27 rates bill should be checked against the correct multiplier for your rateable value band.

Small Business Rate Relief is underclaimed by small operators

Properties with a rateable value of £12,000 or below receive 100% Small Business Rate Relief, provided it is the only property the business uses (gov.uk). The relief tapers: 50% at £13,500, 33% at £14,000, zero at £15,000. Many takeaways, small cafes and independent pubs fall into this range and have never applied. SBRR must be claimed from the local authority; it is not applied automatically in all cases.

Rateable value accuracy and potential challenges

Rateable values are set by the Valuation Office Agency based on hypothetical rental evidence at the antecedent valuation date. A rateable value that does not reflect the true market position means paying too much for the life of the rating list. Hospitality premises that have undergone significant change, are in a declining rental market or were assessed on comparable evidence that no longer holds may have grounds for a check, challenge or appeal. An incorrect rateable value compounds every year it remains in place.

How we help.

2026-27 rates bill review and multiplier check

We review your business rates bill against the correct 2026-27 multiplier for your rateable value and property category, confirm whether the revised RHL multiplier applies and identify any errors in the bill issued by your local authority. England figures are used as the default; operators in Scotland or Wales are flagged separately to the relevant devolved authority position.

Small Business Rate Relief eligibility and application

We assess your rateable value and property use against the SBRR eligibility criteria, confirm whether the 100% relief or the taper applies, and assist with the application to your local authority. For <a href="/for/cafes-and-coffee-shops">cafes</a> and <a href="/for/takeaways">takeaways</a> in particular, an unclaimed SBRR entitlement can be significant. See also <a href="/services/hospitality-vat">VAT</a> and <a href="/services/hospitality-payroll">payroll</a> if you are reviewing overall occupancy costs.

Rateable value review and appeals signposting

We review your rateable value against comparable rental evidence and advise whether a Check, Challenge or Appeal through the Valuation Office Agency process is likely to succeed. We signpost the correct route and timeline, including the obligation to continue paying at the current assessed level while a challenge is live.

Common questions

Do I still get Retail, Hospitality and Leisure relief in 2026 to 2027?
No, not as a new claim. RHL relief ended for new claims from 1 April 2026. GOV.UK states: 'You cannot make a new claim for retail, hospitality and leisure relief. From 1 April 2026, you will need to use rate multipliers to calculate your business rates bill.' The revised multipliers for RHL-category properties in England are set below the national standard rate for 2026-27.
What replaced RHL relief from April 2026?
Revised rate multipliers set specifically for Retail, Hospitality and Leisure category properties in England. For 2026-27: 38.2p in the pound for rateable values below £51,000; 43p for rateable values from £51,000 to £499,999; 50.8p for rateable values at £500,000 or above (gov.uk, England only). Scotland and Wales have separate non-domestic rates regimes.
What is Small Business Rate Relief and do I qualify?
SBRR gives eligible properties 100% relief on business rates where the rateable value is £12,000 or below and the property is the only one the business uses (gov.uk). The relief tapers from £12,001: approximately 50% at £13,500, 33% at £14,000, falling to zero at £15,000. Many small cafes, takeaways and pubs fall in this range. The relief is not automatic in all local authority areas; it must be applied for.
Are business rates different in Scotland and Wales?
Yes. Scotland operates its own non-domestic rates regime with different multipliers and relief schemes, including the Small Business Bonus Scheme. Wales also has its own system. The figures on this page are for England. Operators in Scotland or Wales should check the relevant devolved authority guidance; we can signpost the correct source.

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