HM Treasury has set the high‑value business rates multiplier for England to apply from 1 April 2026. For hereditaments with a rateable value of £500,000 or more, the charge will be levied at 2.8p above the applicable base multiplier, using powers created by the Non‑Domestic Rating (Multipliers and Private Schools) Act 2025 and brought into effect by SI 2026/108. (gov.uk)
In legal terms, the instrument fixes the high‑value multiplier as “B + 0.028” for financial years beginning on or after 1 April 2026. “B” is defined in the Local Government Finance Act 1988 for the charging calculations in Schedules 4ZA, 4ZB and 5A: for local list hereditaments, B is the billing authority’s own non‑domestic rating multiplier where the authority is a special authority and otherwise the national non‑domestic rating multiplier; for the central list, B is the national multiplier. (legislation.gov.uk)
Government has confirmed the 2026/27 national multipliers: 48.0p (standard), 43.2p (small business), and 50.8p for the new high‑value rate; retail, hospitality and leisure (RHL) multipliers will sit 5p below the equivalent national rates. These figures implement the +2.8p uplift set out for high‑value properties. (gov.uk)
Worked example: a hereditament with a £600,000 rateable value that does not qualify for an RHL multiplier would face a pre‑reliefs liability of £304,800 under the high‑value rate (600,000 × 0.508) compared with £288,000 under the standard rate (600,000 × 0.480)-a difference of £16,800. Bills may then be adjusted by the redesigned 2026 transitional relief and, where applicable, a one‑year 1p ‘transitional relief supplement’; local supplements such as the Business Rates Supplement in London remain separate from the multiplier. (gov.uk)
Special‑authority treatment is unchanged in principle. Under section 144(6) of the 1988 Act a billing authority is a “special authority” if, on 1 April 1986, its population was under 10,000 and its gross rateable value per head exceeded £10,000; during Commons scrutiny it was confirmed that the City of London is the only authority meeting this test. Where the billing authority is a special authority, the value of B that is uplifted by 0.028 is that authority’s own multiplier. (legislation.gov.uk)
The £500,000 threshold that triggers use of the high‑value multiplier is embedded in the 1988 Act as amended in 2025, which permits Treasury to prescribe a higher multiplier “for a chargeable day for which the value of A is £500,000 or more”. That cross‑reference appears in the interpretative provisions for both occupied and unoccupied charge calculations, ensuring the threshold is applied consistently. (legislation.gov.uk)
The change lands alongside the 2026 revaluation. HM Treasury’s published analysis confirms that, after revaluation, the national small business and standard multipliers fall to 43.2p and 48.0p respectively, with the high‑value rate set at 50.8p. Final liabilities will vary by property depending on the updated rateable value and the operation of transitional relief. (gov.uk)
Scale and distribution are material for budgeting. Treasury estimates indicate just over 21,000 hereditaments will be within scope of the high‑value multiplier from 1 April 2026, concentrated in London and the South East; around 1,900 distribution warehouses are expected to contribute an additional £270 million across 2026/27 to 2028/29, helping fund the permanent 5p RHL discount. (gov.uk)
Parliamentary process has followed the affirmative route. The instrument was laid on 7 January 2026, considered by a Delegated Legislation Committee on 2 February, and is recorded as coming into force on 1 April 2026. Committee debate materials also set out the 48.0p standard and 50.8p high‑value figures referenced above. (statutoryinstruments.parliament.uk)
Operationally, billing authorities should complete NNDR1 returns and financial modelling on the 2026/27 basis using the confirmed multipliers and VOA rateable values, and reflect the transitional relief supplement where due. Ratepayers near the £500,000 threshold should verify their April 2026 valuation and any RHL eligibility before annual billing. (gov.uk)