The figures show that while the Government has confirmed a permanent system of lower RHL multipliers from April 2026, the support available to pubs will reduce significantly once the temporary 40% discount is withdrawn.
Ryan’s analysis highlights that the existing relief will cost the Exchequer £1.385bn in 2025 to 2026. The new high value surtax on properties above £500k in rateable value will generate £965m in 2026 to 2027. This creates a funding gap of more than £400m for high street support.
Bills set to rise
Under the 2026 Revaluation the average pub sees its rateable value rise from £30,945 to £40,245, an increase of 30%.
Ryan’s worked example shows the impact on a typical pub:
- 2025 to 2026 liability with the current 40% discount: £9,264.93
- 2026 to 2027 liability under the new RHL multiplier: £15,373.59
- Annual increase: £6,108.66 (+65.9%)
The firm warns that while the new multipliers provide a real terms reduction of around 10 to12% for pubs compared with the standard rate, this is far below the current level of discount.
Operators using multiple sites will also gain from the removal of the £110k cap on relief, while independent pubs will experience the sharpest rises.
Legislation allowed the Chancellor to set the high value supplement at up to 10p above the standard rate. The decision to set it at 2.8p has eased the pressure on larger properties but has reduced the available funding for RHL support.
Ryan’s practice leader for Europe and Asia Pacific property tax Alex Probyn said the combination of rising rateable values and much lower relief leaves pubs facing material increases.
He said operators should not be misled by the headline fall in multipliers.
The new RHL lower multipliers deliver a far smaller benefit than the existing discount and the limit on the surtax reduces the pot available for support. Smaller pubs will feel the impact most sharply. The removal of temporary relief and the uplift in rental evidence from the revaluation mean pub bills will rise at speed once the new system takes effect.
Ryan also highlighted that transitional caps will restrict the first year but will not prevent significant increases across the full revaluation cycle.
