If you own a shop in Shoreditch, a cafe in Chelsea, or a tech startup in Old Street, your overheads are about to get a serious makeover.
On April 1, 2026, the UK government will implement the most significant overhaul of the business rates system in a generation.
The transition from a two-multiplier system to a five-multiplier system is designed to favor the “bricks-and-mortar” high street, but for many London offices and high-value properties, the bill is going up.
Here is the Best In London guide to surviving the 2026 revaluation.
The Big Shift: From 2 Multipliers to 5
Previously, your rates were calculated simply by whether you were a “small” or “standard” business.
Now, the government is introducing property-type specific rates to provide permanent support for the Retail, Hospitality, and Leisure (RHL) sectors.
New Multipliers for 2026/27 (Pence in the £):
| Business Type | Rateable Value (RV) | Multiplier |
|---|---|---|
| Small RHL (Retail/Pubs/Cafes) | Under £51,000 | 38.2p |
| Small Non-RHL (Offices/Warehouses) | Under £51,000 | 43.2p |
| Standard RHL | £51,000 – £499,999 | 43.0p |
| Standard Non-RHL | £51,000 – £499,999 | 48.0p |
| High Value (All Sectors) | £500,000+ | 50.8p |
The “London Factor”: Transitional Relief
Because London rents are notoriously higher than the rest of the UK, the “Transitional Relief” scheme has a specific threshold for the capital.
If your rates are increasing due to the new valuations, the government will “cap” that increase to help you adjust.
- For properties in London with an RV up to £28,000: Your bill increase is capped at 5% for the 2026/27 tax year.
- For mid-sized properties (£28,001 – £100,000): The increase is capped at 15%.
- For large properties (Over £100,000): The cap is 30%.
Note: These caps are applied before any other reliefs, ensuring that no London business faces a triple-digit percentage hike overnight.
3 Key Wins for London Small Businesses
- Permanent RHL Support: The old “temporary” 40% relief for shops and pubs is gone, replaced by the permanently lower 38.2p multiplier. This provides long-term certainty for independent London businesses.
- The “Grace Period” Extension: Expanding? From April 2026, if you take on a second property, you can keep your Small Business Rate Relief on your first property for three years (up from one year). This is a massive win for growing London brands.
- Green Relief: If you install Electric Vehicle (EV) charging points on your business premises, you are eligible for 100% relief on those specific installations for the next 10 years.
What Should You Do Today?
The draft rating list is already live. Do not wait for your bill to arrive in March.
- Check your future valuation: Visit the Valuation Office Agency (VOA) website to see your 2026 Rateable Value.
- Challenge early: If you believe your valuation (based on April 2024 rental values) is incorrect, you have until March 31, 2026, to lodge a formal “Check and Challenge.”
- Audit your “RHL” status: Ensure your local council (e.g., Westminster, Camden, or City of London) has correctly classified you as a retail/leisure business to trigger the lower multiplier.
