The Autumn Budget introduced a substantial package of business rates changes for England, bringing a range of new measures and considerations for local authority revenues teams.
From 1st April 2027, the most immediate changes are concentrated on retail, hospitality and leisure (RHL) properties. They include higher Small Business Rates Relief thresholds, a two-year real-terms bill freeze, increased relief for pubs and live music venues, and new exclusions for vape shops and Adult Gaming Centres. The Budget also sets out the government’s longer-term direction on business rates retention and confirms that a General Anti-Avoidance Rule will be introduced, although further detail on both is still to come.
Furthermore, the accompanying Business Rates Information Letter (BRIL 8/2026) and the Summary of Responses to the Business Rates and Investment: Call for Evidence were released. These publications provided much-needed detail on the Budget announcements, along with clarity regarding wider reforms.
Here are some of the developments likely to matter most.
More variation in liability from April 2027
MHCLG has confirmed five non-domestic rating multipliers for 2027/28:
- Standard multiplier: 49.7p
- Small business multiplier: 44.7p
- Standard RHL multiplier: 44.5p
- Small business RHL multiplier: 39.5p
- High-value multiplier: 52.5p
The changes sit alongside a broader package of support for qualifying retail, hospitality and leisure properties.
From April 2027, qualifying RHL properties will benefit from increased Small Business Rates Relief thresholds of £18,000 RV for full relief and £21,000 RV for tapered relief.
A single England-wide aggregate threshold of £29,999 RV will also apply when assessing additional properties for SBRR.
For revenues teams, this means more variables to get right on each bill. The multiplier that applies depends on a property’s rateable value and whether it qualifies as RHL, and RHL status also decides whether the higher SBRR thresholds apply. The single national aggregate threshold replaces the separate London and non-London limits, so eligibility may also change for ratepayers who occupy more than one property.
Administration is becoming more complex
Qualifying occupied RHL properties will receive a two-year real-terms bill freeze in 2027/28 and 2028/29, limiting annual increases to CPI inflation.
Pubs, social clubs and most live music venues will also receive 35% relief during the same period.
At the same time, eligibility is changing. Vape shops will no longer qualify for SBRR or the RHL multipliers, while Adult Gaming Centres will no longer qualify for the RHL multipliers.
For billing authorities, the practical issue is ensuring the correct treatment is applied to the correct property – particularly for hereditaments such as Vape Shops, which are not currently defined. Accurate property information and consistent relief checks will therefore remain central as the new rules take effect.
Business rates retention raises the stakes
One of the most significant longer-term developments is the Government’s move towards greater local retention of business rates.
The Budget’s Fiscal Devolution Roadmap sets out the government’s intention for local and regional government to retain 100% of business rates income by the end of the decade, in place of grants from central government. Within this, the share retained by local authorities is expected to increase to at least 70%, starting with Mayoral Strategic Authorities receiving a 20% share of business rates from April 2027. The government will seek views from the sector on how best to achieve 100% retention.
Separately, subject to Full Business Case approval and legislation, the government plans a first wave of Business Rates Retention Zones in nine Mayoral Strategic Authority areas. Within these zones, the relevant billing authorities will be able to retain 100% of business rates growth above an agreed baseline for 25 years.
For councils, this increases the importance of understanding what is happening across the local rating list.
Changes in rateable value, appeals, missing assessments and wider taxbase growth could have an increasingly direct relationship with local income, making accurate forecasting and visibility over potential yield movement even more important.
Read the Autumn Budget 2026 regional factsheet
Stronger powers to tackle avoidance
The Government has also confirmed its intention to introduce a statutory General Anti-Avoidance Rule for business rates, with consultation expected during winter 2026/27.
From 1st April 2027, authorities will also be reimbursed for reasonable external legal costs where they lose cases testing a point of law.
This could give billing authorities greater confidence to pursue complex avoidance cases where the potential legal cost has previously been a barrier.
Further guidance on eligible costs is still expected.
Implementation will bring additional work
The changes will inevitably create implementation requirements across billing systems, processes and teams.
Importantly, the Government has confirmed that reasonable additional costs incurred by local authorities will be considered through a New Burdens assessment, including software, staffing and administrative costs.
That makes the coming months an important period for authorities to understand what changes will be required locally. The anticipated publication of detailed regulations and guidance will hopefully provide some answers.
Read the latest MHCLG business rates guidance
What happens next?
Not every detail is settled. Further regulations and guidance are expected on several of the measures announced in the Budget, while consultation on the General Anti-Avoidance Rule is still to come.
Duty to Notify has also been pushed back and will not become mandatory before 2032, while Valuation Tribunal fees for non-domestic rating appeals are being abolished for the 2026 Rating List and future lists.
Read the latest Duty to Notify guidance
How Analyse Local can help:
For revenues teams, the picture for 2027/28 is therefore becoming clearer, but there is still more detail to follow.
Analyse Local will continue to monitor the changes and keep local authorities updated as further guidance is published. Through AL Insight Assist, authorised users can access updated practice notes, technical guidance, case law summaries and Ask AL support as the business rates landscape continues to evolve.
As more business rates income is retained locally, AL Insight Forecast helps authorities monitor checks, challenges and appeals and manage their NNDR provisions, while AL Maximise Business supports the identification of missing or under-assessed properties for reporting to the Valuation Office. Alongside this, AL Verify Validate gives authorities visibility of SBRR audit cases and incoming applications, helping them apply relief correctly as the RHL thresholds, the national aggregate threshold and the vape shop exclusions take effect.
To find out more about how Analyse Local supports revenues teams, contact our team.
This article is intended for general information only and does not constitute professional advice. Readers should refer to official government guidance where appropriate.