HM Treasury has set out how the new business rates multipliers for qualifying retail, hospitality or leisure (RHL) properties in England will operate from 1 April 2026. Two lower multipliers will apply: one aligned to the small business rate and one aligned to the standard rate, each set 5 pence below the corresponding national multiplier for the year. The measure is made under powers inserted into Schedule 7 to the Local Government Finance Act 1988 by the Non‑Domestic Rating (Multipliers and Private Schools) Act 2025. ([gov.uk](https://www.gov.uk/guidance/business-rates-multipliers-qualifying-retail-hospitality-or-leisure?utm_source=openai))
In legislative terms, the Regulations express the RHL small business multiplier as the small business multiplier less 0.05 and the RHL standard multiplier as the standard multiplier less 0.05. For readers working with the formulas in Schedule 4ZA, “D” denotes the small business non‑domestic rating multiplier and “B” denotes the standard non‑domestic rating multiplier; the RHL figures are therefore D−0.05 and B−0.05. This equates to a 5p‑in‑the‑pound reduction relative to the applicable national multipliers. ([legislation.gov.uk](https://www.legislation.gov.uk/ukpga/1988/41/schedule/4ZA/paragraph/10?utm_source=openai))
Schedule 4ZA to the 1988 Act sets the meanings of B and D. Where the billing authority is a “special authority”, B and D mean that authority’s own multipliers for the year; otherwise they mean the national multipliers. A “special authority” is defined in section 144(6) of the 1988 Act by reference to population and gross rateable value on 1 April 1986. ([legislation.gov.uk](https://www.legislation.gov.uk/ukpga/1988/41/schedule/4ZA/paragraph/10?utm_source=openai))
Eligibility turns on whether a hereditament is a “qualifying retail, hospitality or leisure hereditament”. Treasury regulations made in October 2025 define this as premises used wholly or mainly for one or more qualifying purposes: selling or hiring goods to visiting members of the public; providing services to visiting members of the public; the sale of food or drink; hotels and guest houses (without significant nursing care); caravan parks, campsites and self‑catering; and specified cultural, community or recreational facilities such as live music venues, cinemas, theatres, museums, sports clubs, gyms and theme parks. Online sales do not disqualify a property if there is in‑person provision to the public. ([legislation.gov.uk](https://www.legislation.gov.uk/uksi/2025/1093/body/made?utm_source=openai))
There are important exclusions. Schedule 1 to the 2025 definition regulations removes premises used wholly or mainly for purposes including financial services; medical and health services; professional services such as law, accountancy and estate agency; storage and distribution for online sales; recording and film studios used for business production; conference centres; betting shops; postal sorting offices; citizens’ advice bureaux; job centres; marinas; car parks; and most public transport premises. Authorities should test main use against these exclusions. ([legislation.gov.uk](https://www.legislation.gov.uk/uksi/2025/1093/schedule/1/made?utm_source=openai))
Value thresholds are unchanged. The small business RHL multiplier applies where the rateable value (RV) is under £51,000; the standard RHL multiplier applies from £51,000 to £499,999. Properties with RVs of £500,000 and above are outside the RHL regime and fall under the separate high‑value multiplier created by the 2025 Act. ([gov.uk](https://www.gov.uk/guidance/business-rates-multipliers-qualifying-retail-hospitality-or-leisure?utm_source=openai))
For 2026–27, the government has confirmed the cash figures: the RHL small business multiplier will be 38.2p and the RHL standard multiplier 43.0p, reflecting a 5p discount from the national small business and standard multipliers respectively. Expressed simply, the gross rates bill is RV × multiplier; for a qualifying shop with a £100,000 RV, the 5p reduction is worth around £5,000 before any other reliefs. ([gov.uk](https://www.gov.uk/government/publications/budget-2025-document/budget-2025-html?utm_source=openai))
Administration sits with billing authorities. Government guidance confirms that local authorities must determine whether a hereditament meets the legislative RHL definition and then apply the lower multipliers; there is no cash cap, so all qualifying hereditaments in a chain benefit. The guidance also clarifies how “visiting members of the public” should be assessed, including for mixed in‑person/online operations. ([gov.uk](https://www.gov.uk/guidance/business-rates-multipliers-qualifying-retail-hospitality-or-leisure?utm_source=openai))
Timing is straightforward. The new RHL multipliers take effect for chargeable days from 1 April 2026 and then roll forward by reference to the national multipliers each year. The 2026–27 figures were announced at the 26 November 2025 Budget, with formal notice issued to billing authorities for annual billing. ([gov.uk](https://www.gov.uk/government/publications/budget-2025-document/budget-2025-html?utm_source=openai))