The Government has reduced the rates used to calculate bills for retail, hospitality and leisure businesses in England from April 2027, following updated guidance issued to local councils.
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The revision, published on 30 October, two days after the Budget, reduces both hospitality business rates multipliers by 0.2p, increasing the discount against standard rates from 5p to 5.2p.
The small business multiplier has been reduced from 39.7p to 39.5p, while the standard hospitality multiplier has fallen from 44.7p to 44.5p.
Ryan estimates the changes will provide an additional £33m in annual discounts across eligible retail, hospitality and leisure businesses, although individual savings will depend on eligibility and existing relief.
The Government said the changes ensure inflation adjustments are applied consistently and reflect its original policy intention.
Business rates pressure
Alex Probyn, practice leader for property tax in Europe and Asia-Pacific at Ryan, welcomed the revision but criticised the timing.
He said: “The correction is welcome. Increasing the discount protects its value against inflation and is good news for retail, hospitality and leisure businesses.
“But stability and certainty start with getting the published tax rates right. Businesses and advisers began planning around the figures issued on Budget Day, only for those rates to change within days.”
The revision follows the Chancellor’s announcement of expanded business rates relief in October’s Budget, including an increase in the threshold for full Small Business Rates Relief from £12,000 to £18,000.
It also comes after earlier analysis from Ryan warned hospitality, leisure and accommodation businesses could face a £129m increase in business rates from April 2027 due to inflation.