{"id":970544,"date":"2025-11-19T14:48:03","date_gmt":"2025-11-19T14:48:03","guid":{"rendered":"https:\/\/ukpostcode.org\/content\/?p=970544"},"modified":"2025-11-19T14:48:03","modified_gmt":"2025-11-19T14:48:03","slug":"government-releases-new-draft-rates-for-retail-hospitality-and-leisure-sectors","status":"publish","type":"post","link":"https:\/\/ukpostcode.org\/content\/government-releases-new-draft-rates-for-retail-hospitality-and-leisure-sectors\/","title":{"rendered":"Government Releases New Draft Rates for Retail, Hospitality and Leisure Sectors"},"content":{"rendered":"<p>&nbsp;<\/p>\n<hr \/>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/ukpostcode.org\/content\/government-releases-new-draft-rates-for-retail-hospitality-and-leisure-sectors\/#_Whats_changing\" title=\"\u00a0What\u2019s changing\">\u00a0What\u2019s changing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/ukpostcode.org\/content\/government-releases-new-draft-rates-for-retail-hospitality-and-leisure-sectors\/#_Key_thresholds_eligibility\" title=\"\u00a0Key thresholds &amp; eligibility\">\u00a0Key thresholds &amp; eligibility<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/ukpostcode.org\/content\/government-releases-new-draft-rates-for-retail-hospitality-and-leisure-sectors\/#_Whats_not_yet_finalised\" title=\"\u00a0What\u2019s not yet finalised\">\u00a0What\u2019s not yet finalised<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/ukpostcode.org\/content\/government-releases-new-draft-rates-for-retail-hospitality-and-leisure-sectors\/#_Implications_what_to_watch\" title=\"\u00a0Implications &amp; what to watch\">\u00a0Implications &amp; what to watch<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/ukpostcode.org\/content\/government-releases-new-draft-rates-for-retail-hospitality-and-leisure-sectors\/#_For_your_article_use_case_if_youre_writing_about_this\" title=\"\u00a0For your article \/ use case (if you\u2019re writing about this)\">\u00a0For your article \/ use case (if you\u2019re writing about this)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/ukpostcode.org\/content\/government-releases-new-draft-rates-for-retail-hospitality-and-leisure-sectors\/#Case_Studies_Illustrative_Examples\" title=\"Case Studies &amp; Illustrative Examples\">Case Studies &amp; Illustrative Examples<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/ukpostcode.org\/content\/government-releases-new-draft-rates-for-retail-hospitality-and-leisure-sectors\/#Expert_Industry_Commentary\" title=\"Expert &amp; Industry Commentary\">Expert &amp; Industry Commentary<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/ukpostcode.org\/content\/government-releases-new-draft-rates-for-retail-hospitality-and-leisure-sectors\/#Key_Risks_Trade-offs_and_Strategic_Implications\" title=\"Key Risks, Trade-offs, and Strategic Implications\">Key Risks, Trade-offs, and Strategic Implications<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/ukpostcode.org\/content\/government-releases-new-draft-rates-for-retail-hospitality-and-leisure-sectors\/#Commentary_Summary_Pros_vs_Cons\" title=\"Commentary Summary: Pros vs Cons\">Commentary Summary: Pros vs Cons<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/ukpostcode.org\/content\/government-releases-new-draft-rates-for-retail-hospitality-and-leisure-sectors\/#My_Analysis_Key_Take-Aways\" title=\"My Analysis &amp; Key Take-Aways\">My Analysis &amp; Key Take-Aways<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"_Whats_changing\"><\/span>\u00a0What\u2019s changing<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li>From <strong>1 April 2026<\/strong>, the government will introduce <strong>new lower business-rates multipliers<\/strong> specifically for RHL properties (shops, hospitality, leisure) with a <em>rateable value<\/em> (RV) under <strong>\u00a3500,000<\/strong>. (<a title=\"Business Rates Multipliers: Qualifying Retail, Hospitality or ...\" href=\"https:\/\/www.gov.uk\/guidance\/business-rates-multipliers-qualifying-retail-hospitality-or-leisure?utm_source=chatgpt.com\">GOV.UK<\/a>)\n<ul>\n<li>Two categories:\n<ul>\n<li><strong>Small business RHL multiplier<\/strong> \u2192 for those with RV under <strong>\u00a351,000<\/strong>. (<a title=\"Business Rates Multipliers: Qualifying Retail, Hospitality or ...\" href=\"https:\/\/www.gov.uk\/guidance\/business-rates-multipliers-qualifying-retail-hospitality-or-leisure?utm_source=chatgpt.com\">GOV.UK<\/a>)<\/li>\n<li><strong>Standard RHL multiplier<\/strong> \u2192 for those with RV from <strong>\u00a351,000 to \u00a3499,999<\/strong>. (<a title=\"Business Rates Multipliers: Qualifying Retail, Hospitality or ...\" href=\"https:\/\/www.gov.uk\/guidance\/business-rates-multipliers-qualifying-retail-hospitality-or-leisure?utm_source=chatgpt.com\">GOV.UK<\/a>)<\/li>\n<\/ul>\n<\/li>\n<li>These new multipliers replace the previous scheme of reliefs (e.g., the 40% relief scheme) for such properties. (<a title=\"Changes to business rates and targeted retail, hospitality ...\" href=\"https:\/\/www.armstrongwatson.co.uk\/news\/2025\/05\/changes-business-rates-and-targeted-retail-hospitality-and-leisure-support?utm_source=chatgpt.com\">Armstrong Watson<\/a>)<\/li>\n<li>There will be <strong>no cash cap<\/strong> on the benefit for those qualifying properties under the new multipliers. (<a title=\"Business Rates Multipliers: Qualifying Retail, Hospitality or ...\" href=\"https:\/\/www.gov.uk\/guidance\/business-rates-multipliers-qualifying-retail-hospitality-or-leisure?utm_source=chatgpt.com\">GOV.UK<\/a>)<\/li>\n<\/ul>\n<\/li>\n<li>The <strong>legislative definition<\/strong> of what counts as an RHL property is now published, via the Valuation Office Agency (VOA) guidance and the regulations:\n<ul>\n<li>Qualifying properties must be <strong>occupied<\/strong> and <strong>wholly or mainly<\/strong> used for a qualifying purpose (retail sale or hire of goods \/ hospitality food &amp; drink \/ leisure &amp; recreation) and accessible by the public. (<a title=\"Business Rates Multipliers: Qualifying Retail, Hospitality or ...\" href=\"https:\/\/www.gov.uk\/guidance\/business-rates-multipliers-qualifying-retail-hospitality-or-leisure?utm_source=chatgpt.com\">GOV.UK<\/a>)<\/li>\n<li>If an RHL property becomes vacant (after empty-property relief ends), the standard multiplier will apply (not the reduced RHL multiplier). (<a title=\"4\/2025: Retail, Hospitality and Leisure (RHL) Multipliers\" href=\"https:\/\/www.gov.uk\/government\/publications\/42025-retail-hospitality-and-leisure-rhl-multipliers\/42025-retail-hospitality-and-leisure-rhl-multipliers?utm_source=chatgpt.com\">GOV.UK<\/a>)<\/li>\n<\/ul>\n<\/li>\n<li>To <strong>fund<\/strong> these cuts to smaller RHL properties, the Government is introducing a <strong>supplementary multiplier<\/strong> (or higher multiplier) for <strong>properties with RV of \u00a3500,000 or above<\/strong> from 2026. (<a title=\"Businesses in England face double whammy as ...\" href=\"https:\/\/www.landlordzone.co.uk\/news\/businesses-in-england-face-double-a-whammy-hit-as-business-rates-are-reviewed-in-2026?utm_source=chatgpt.com\">landlordzone.co.uk<\/a>)<\/li>\n<li>In the <strong>short term<\/strong> (for 2025-26), the RHL relief scheme is being extended but at a <strong>reduced rate<\/strong>:\n<ul>\n<li>For eligible RHL properties, relief of <strong>40 %<\/strong> (down from 75 %) up to a cap of <strong>\u00a3110,000 per business<\/strong> for 2025\/26. (<a title=\"Changes to business rates and targeted retail, hospitality ...\" href=\"https:\/\/www.armstrongwatson.co.uk\/news\/2025\/05\/changes-business-rates-and-targeted-retail-hospitality-and-leisure-support?utm_source=chatgpt.com\">Armstrong Watson<\/a>)<\/li>\n<li>Meanwhile, standard and small business multipliers for general properties: the standard multiplier has been increased with inflation, the small business multiplier frozen. (<a title=\"Changes to business rates and targeted retail, hospitality ...\" href=\"https:\/\/www.armstrongwatson.co.uk\/news\/2025\/05\/changes-business-rates-and-targeted-retail-hospitality-and-leisure-support?utm_source=chatgpt.com\">Armstrong Watson<\/a>)<\/li>\n<\/ul>\n<\/li>\n<li>On the communication side:\n<ul>\n<li>The Government (via the Local Authorities) has published business-rates information letters (like \u201cInformation Letter 4\/2025: RHL Multipliers\u201d) to give advance notice of the upcoming changes. (<a title=\"4\/2025: Retail, Hospitality and Leisure (RHL) Multipliers\" href=\"https:\/\/www.gov.uk\/government\/publications\/42025-retail-hospitality-and-leisure-rhl-multipliers\/42025-retail-hospitality-and-leisure-rhl-multipliers?utm_source=chatgpt.com\">GOV.UK<\/a>)<\/li>\n<li>Local Authorities and software suppliers need to prepare to show <strong>all five multipliers<\/strong> on demand notices from 2026. (<a title=\"4\/2025: Retail, Hospitality and Leisure (RHL) Multipliers\" href=\"https:\/\/www.gov.uk\/government\/publications\/42025-retail-hospitality-and-leisure-rhl-multipliers\/42025-retail-hospitality-and-leisure-rhl-multipliers?utm_source=chatgpt.com\">GOV.UK<\/a>)<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<hr \/>\n<h3><span class=\"ez-toc-section\" id=\"_Key_thresholds_eligibility\"><\/span>\u00a0Key thresholds &amp; eligibility<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table>\n<thead>\n<tr>\n<th>Threshold<\/th>\n<th>Details<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>RV &lt; \u00a351,000<\/td>\n<td>Qualifies for the \u201csmall business RHL multiplier\u201d. (<a title=\"Business Rates Multipliers: Qualifying Retail, Hospitality or ...\" href=\"https:\/\/www.gov.uk\/guidance\/business-rates-multipliers-qualifying-retail-hospitality-or-leisure?utm_source=chatgpt.com\">GOV.UK<\/a>)<\/td>\n<\/tr>\n<tr>\n<td>RV \u00a351,000-\u00a3499,999<\/td>\n<td>Qualifies for the \u201cstandard RHL multiplier\u201d. (<a title=\"Business Rates Multipliers: Qualifying Retail, Hospitality or ...\" href=\"https:\/\/www.gov.uk\/guidance\/business-rates-multipliers-qualifying-retail-hospitality-or-leisure?utm_source=chatgpt.com\">GOV.UK<\/a>)<\/td>\n<\/tr>\n<tr>\n<td>RV \u2265 \u00a3500,000<\/td>\n<td>Does <strong>not<\/strong> qualify for RHL multiplier; subject to higher multiplier\/supplement. (<a title=\"Businesses in England face double whammy as ...\" href=\"https:\/\/www.landlordzone.co.uk\/news\/businesses-in-england-face-double-a-whammy-hit-as-business-rates-are-reviewed-in-2026?utm_source=chatgpt.com\">landlordzone.co.uk<\/a>)<\/td>\n<\/tr>\n<tr>\n<td>Relief for 2025-26<\/td>\n<td>40% relief for RHL-eligible properties up to \u00a3110k per business. (<a title=\"Changes to business rates and targeted retail, hospitality ...\" href=\"https:\/\/www.armstrongwatson.co.uk\/news\/2025\/05\/changes-business-rates-and-targeted-retail-hospitality-and-leisure-support?utm_source=chatgpt.com\">Armstrong Watson<\/a>)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<hr \/>\n<h3><span class=\"ez-toc-section\" id=\"_Whats_not_yet_finalised\"><\/span>\u00a0What\u2019s <strong>not yet finalised<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>The <strong>exact rate<\/strong> (pence in the pound) for the two RHL multipliers will be announced in the Autumn Budget 2025. (<a title=\"Business Rates Multipliers: Qualifying Retail, Hospitality or ...\" href=\"https:\/\/www.gov.uk\/guidance\/business-rates-multipliers-qualifying-retail-hospitality-or-leisure?utm_source=chatgpt.com\">GOV.UK<\/a>)<\/li>\n<li>The <strong>draft list of rateable values<\/strong> (for the 2026 revaluation) will be published later in autumn by the VOA. (<a title=\"2026 Rating Revaluation\" href=\"https:\/\/www.allsop.co.uk\/insights\/2026-rating-revaluation\/?utm_source=chatgpt.com\">Allsop<\/a>)<\/li>\n<li>Some question over whether large \u201canchor\u201d retail stores (with RV &gt; \u00a3500,000) might be exempted from the higher multiplier\/supplement\u2014this is still under debate. (<a title=\"Businesses in England face double whammy as ...\" href=\"https:\/\/www.landlordzone.co.uk\/news\/businesses-in-england-face-double-a-whammy-hit-as-business-rates-are-reviewed-in-2026?utm_source=chatgpt.com\">landlordzone.co.uk<\/a>)<\/li>\n<\/ul>\n<hr \/>\n<h3><span class=\"ez-toc-section\" id=\"_Implications_what_to_watch\"><\/span>\u00a0Implications &amp; what to watch<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>For <strong>smaller high-street retail, hospitality and leisure businesses<\/strong> (RV &lt; \u00a3500k) this is good news: they\u2019ll have more certainty of lower tax burdens from 2026.<\/li>\n<li>For <strong>larger properties<\/strong> (RV &gt;= \u00a3500k) the tax burden may increase (to fund the cuts for smaller ones). Some large retail chains are already warning of extra costs. (<a title=\"Retail and Leisure Giants estimated to face extra \u00a3600million Business rates bill\" href=\"https:\/\/www.colliers.com\/en-gb\/news\/retail-and-leisure-giants-estimated-to-face-extra-600million?utm_source=chatgpt.com\">Colliers<\/a>)<\/li>\n<li>Businesses need to <strong>check eligibility<\/strong> carefully (main-use test, \u201cvisiting members of the public\u201d, occupied status) \u2014 being partly mixed-use may affect qualification.<\/li>\n<li>Accounting and budgeting: since the exact rates are unknown, businesses should model scenarios (e.g., \u201cwhat if multiplier is 20p lower\u201d) and stay alert to the upcoming Autumn Budget announcement.<\/li>\n<\/ul>\n<hr \/>\n<h3><span class=\"ez-toc-section\" id=\"_For_your_article_use_case_if_youre_writing_about_this\"><\/span>\u00a0For your article \/ use case (if you\u2019re writing about this)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Since I see you often write detailed articles, here are some angles you might want to highlight:<\/p>\n<ul>\n<li><strong>Case study<\/strong>: A small independent caf\u00e9 with RV \u00a340k \u2014 how will its bill change under the new multiplier vs current relief?<\/li>\n<li><strong>Comparison<\/strong>: A large retail chain store with RV \u00a3600k \u2014 how will the proposed higher multiplier impact it?<\/li>\n<li><strong>Unintended consequences<\/strong>: Could increasing costs on anchor stores reduce footfall in high streets? (Some experts warn yes) (<a title=\"Retail and Leisure Giants estimated to face extra \u00a3600million Business rates bill\" href=\"https:\/\/www.colliers.com\/en-gb\/news\/retail-and-leisure-giants-estimated-to-face-extra-600million?utm_source=chatgpt.com\">Colliers<\/a>)<\/li>\n<li><strong>Implementation issues<\/strong>: What do local authorities and billing software vendors need to prepare? (E.g., showing five multipliers on demand notices)<\/li>\n<li><strong>Timing<\/strong>: The relief for 2025\/26 is transitional; the permanent system starts 2026. It\u2019s important to mark this timeline clearly.<\/li>\n<li>Good question. Here are some <strong>case-studies, expert commentary, and trade-reaction<\/strong> around the UK government\u2019s new draft business-rates proposals for the <strong>Retail, Hospitality, and Leisure (RHL)<\/strong> sector \u2014 plus key risks and benefits.<br \/>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"Case_Studies_Illustrative_Examples\"><\/span>Case Studies &amp; Illustrative Examples<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>While the government hasn\u2019t released detailed \u201chere are 10 named shops + pubs + gyms and how much their bill changes\u201d case studies, we can build some <strong>plausible scenarios<\/strong> from the policy, supported by expert modelling and commentary. These help show how the new rates might play out across different types of RHL businesses.<\/p>\n<ol>\n<li><strong>Small Independent Caf\u00e9<\/strong>\n<ul>\n<li><strong>Profile<\/strong>: A caf\u00e9 in a town centre with a <strong>rateable value (RV)<\/strong> of, say, <strong>\u00a345,000<\/strong>.<\/li>\n<li><strong>Under new system (from April 2026)<\/strong>: It would qualify for the <strong>small-business RHL multiplier<\/strong>, because its RV is under \u00a351,000. (<a title=\"Business Rates Multipliers: Qualifying Retail, Hospitality or Leisure - GOV.UK\" href=\"https:\/\/www.gov.uk\/guidance\/business-rates-multipliers-qualifying-retail-hospitality-or-leisure?utm_source=chatgpt.com\">GOV.UK<\/a>)<\/li>\n<li><strong>Impact<\/strong>: This caf\u00e9 could pay <em>significantly less<\/em> in business rates compared to what it might pay under a non-RHL multiplier, helping free up cash for staffing or refurbishment.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Regional Pub Chain Outlet<\/strong>\n<ul>\n<li><strong>Profile<\/strong>: A pub belonging to a mid-sized chain, RV ~ <strong>\u00a3200,000<\/strong>.<\/li>\n<li><strong>Under new system<\/strong>: Qualifies for the <strong>standard RHL multiplier<\/strong> (RV between \u00a351,000 and \u00a3499,999). (<a title=\"Business Rates Multipliers: Qualifying Retail, Hospitality or Leisure - GOV.UK\" href=\"https:\/\/www.gov.uk\/guidance\/business-rates-multipliers-qualifying-retail-hospitality-or-leisure?utm_source=chatgpt.com\">GOV.UK<\/a>)<\/li>\n<li><strong>Impact<\/strong>: The removal of the <em>\u00a3110,000 cash cap<\/em> (which existed under the temporary relief scheme) is a big deal: <strong>multi-site operators<\/strong> benefit more, because each qualifying location can get support rather than being limited by a per-business cap. (<a title=\"Government confirms new lower business-rates multipliers for hospitality from April 2026\" href=\"https:\/\/www.morningadvertiser.co.uk\/Article\/2025\/10\/17\/government-confirms-new-lower-business-rates-multipliers-for-hospitality-from-april-2026\/?utm_source=chatgpt.com\">MorningAdvertiser.co.uk<\/a>)<\/li>\n<li><strong>But<\/strong>: If this chain also has larger flagship sites (RV \u2265 \u00a3500,000), those might face a \u201csupplement\u201d (i.e., higher multiplier) to help fund the relief. (<a title=\"Government confirms new lower business-rates multipliers for hospitality from April 2026\" href=\"https:\/\/www.morningadvertiser.co.uk\/Article\/2025\/10\/17\/government-confirms-new-lower-business-rates-multipliers-for-hospitality-from-april-2026\/?utm_source=chatgpt.com\">MorningAdvertiser.co.uk<\/a>)<\/li>\n<\/ul>\n<\/li>\n<li><strong>Leisure \/ Gym Facility<\/strong>\n<ul>\n<li><strong>Profile<\/strong>: A gym or leisure centre, RV say <strong>\u00a3450,000<\/strong>.<\/li>\n<li><strong>Under the new framework<\/strong>: Also qualifies for the standard RHL multiplier (since it\u2019s under \u00a3500k).<\/li>\n<li><strong>Impact<\/strong>: This could mean a more stable and predictable rates burden compared to temporary reliefs \u2014 useful for planning capital investments (e.g., new equipment).<\/li>\n<\/ul>\n<\/li>\n<li><strong>Large Retail Warehouse \/ Anchor Store<\/strong>\n<ul>\n<li><strong>Profile<\/strong>: A big-box store or supermarket with <strong>RV \u2265 \u00a3500,000<\/strong>.<\/li>\n<li><strong>Under new system<\/strong>: These <strong>do not qualify<\/strong> for the lower RHL multiplier. Instead, they may be hit with a <strong>supplementary (higher) multiplier<\/strong>. (<a title=\"Business rates: forward look - GOV.UK\" href=\"https:\/\/www.gov.uk\/government\/publications\/business-rates-forward-look\/business-rates-forward-look?utm_source=chatgpt.com\">GOV.UK<\/a>)<\/li>\n<li><strong>Impact<\/strong>: That could be a substantial cost increase, especially after revaluation. As some analysts note, penalizing these big stores may have unintended knock-on effects (e.g., footfall, high-street ecosystem). (<a title=\"Business rates: a declining grade | Estates Gazette\" href=\"https:\/\/www.estatesgazette.co.uk\/legal\/business-rates-a-declining-grade\/?utm_source=chatgpt.com\">estatesgazette.co.uk<\/a>)<\/li>\n<li><strong>Strategic risk<\/strong>: If anchor tenants face huge cost increases, their business model might be squeezed, which could in turn hurt smaller high-street shops that rely on foot traffic.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Multi-site Restaurant Group<\/strong>\n<ul>\n<li><strong>Profile<\/strong>: A restaurant chain with many sites, each with moderate RVs.<\/li>\n<li><strong>Under new system<\/strong>: Each site under \u00a3500k qualifies individually, <strong>without cash cap<\/strong>. (<a title=\"Government confirms new lower business-rates multipliers for hospitality from April 2026\" href=\"https:\/\/www.morningadvertiser.co.uk\/Article\/2025\/10\/17\/government-confirms-new-lower-business-rates-multipliers-for-hospitality-from-april-2026\/?utm_source=chatgpt.com\">MorningAdvertiser.co.uk<\/a>)<\/li>\n<li><strong>Impact<\/strong>: Better-than-expected benefit for chain operators: previously, cash-cap limited how much total relief they got across all sites. The change could make high-volume expansion more sustainable.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"Expert_Industry_Commentary\"><\/span>Expert &amp; Industry Commentary<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Here\u2019s a breakdown of what different experts, firms, and trade bodies are saying \u2014 the positives, the concerns, and key uncertainties.<\/p>\n<ol>\n<li><strong>Colliers (Property Adviser \/ Consultant)<\/strong>\n<ul>\n<li><strong>Criticism<\/strong>: Colliers warns that the reform might be \u201cmisguided.\u201d (<a title=\"Business rates: a declining grade | Estates Gazette\" href=\"https:\/\/www.estatesgazette.co.uk\/legal\/business-rates-a-declining-grade\/?utm_source=chatgpt.com\">estatesgazette.co.uk<\/a>)\n<ul>\n<li>Their argument: While smaller RHL properties benefit, the burden is being shifted to very large properties (RV \u2265 \u00a3500,000). This could hit supermarkets, big retail warehouses, and other \u201cbig-box\u201d locations hard. (<a title=\"Business rates: a declining grade | Estates Gazette\" href=\"https:\/\/www.estatesgazette.co.uk\/legal\/business-rates-a-declining-grade\/?utm_source=chatgpt.com\">estatesgazette.co.uk<\/a>)<\/li>\n<li>They worry about the broader high-street ecosystem: if large anchor stores struggle, that may hurt overall footfall and local economies. (<a title=\"Business rates: a declining grade | Estates Gazette\" href=\"https:\/\/www.estatesgazette.co.uk\/legal\/business-rates-a-declining-grade\/?utm_source=chatgpt.com\">estatesgazette.co.uk<\/a>)<\/li>\n<\/ul>\n<\/li>\n<li><strong>Funding mechanism<\/strong>: Colliers notes the higher multiplier on very large properties will fund the RHL discount. (<a title=\"Colliers | Reaction to Business Rates measures announced in the 2024 Autumn Statement\" href=\"https:\/\/www.colliers.com\/en-gb\/news\/30-10-24-colliers-react-to-business-rates-measures-announced-in-october-budget-2024?utm_source=chatgpt.com\">Colliers<\/a>)<\/li>\n<li><strong>Revaluation risk<\/strong>: Even with lower multipliers, some RHL operators may not feel much benefit because of the 2026 revaluation pushing up RVs. (<a title=\"Colliers | Reaction to Business Rates measures announced in the 2024 Autumn Statement\" href=\"https:\/\/www.colliers.com\/en-gb\/news\/30-10-24-colliers-react-to-business-rates-measures-announced-in-october-budget-2024?utm_source=chatgpt.com\">Colliers<\/a>)<\/li>\n<\/ul>\n<\/li>\n<li><strong>Tax \/ Property-Tax Specialists (Ryan, via Morning Advertiser)<\/strong>\n<ul>\n<li>Alex Probyn from Ryan (property tax) comments:\n<ul>\n<li>The scrapping of the <strong>\u00a3110,000 cap<\/strong> is \u201ca major boost\u201d for multi-site operators. (<a title=\"Government confirms new lower business-rates multipliers for hospitality from April 2026\" href=\"https:\/\/www.morningadvertiser.co.uk\/Article\/2025\/10\/17\/government-confirms-new-lower-business-rates-multipliers-for-hospitality-from-april-2026\/?utm_source=chatgpt.com\">MorningAdvertiser.co.uk<\/a>)<\/li>\n<li>But he flags risk: \u201cmany will now be anxiously waiting\u201d to see what happens for <strong>larger sites<\/strong> (\u2265 \u00a3500k) and how big the \u201csupplement\u201d is. (<a title=\"Government confirms new lower business-rates multipliers for hospitality from April 2026\" href=\"https:\/\/www.morningadvertiser.co.uk\/Article\/2025\/10\/17\/government-confirms-new-lower-business-rates-multipliers-for-hospitality-from-april-2026\/?utm_source=chatgpt.com\">MorningAdvertiser.co.uk<\/a>)<\/li>\n<li>He also notes that while smaller independents will see a more stable rate burden (rather than temporary relief), the reform isn\u2019t a \u201cstep-change\u201d for all \u2014 some may only get similar benefits to what they have now, not huge drops. (<a title=\"Government confirms new lower business-rates multipliers for hospitality from April 2026\" href=\"https:\/\/www.morningadvertiser.co.uk\/Article\/2025\/10\/17\/government-confirms-new-lower-business-rates-multipliers-for-hospitality-from-april-2026\/?utm_source=chatgpt.com\">MorningAdvertiser.co.uk<\/a>)<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li><strong>Government \/ Treasury<\/strong>\n<ul>\n<li>The government argues this is a <em>permanent structural change<\/em>, not just another temporary relief. (<a title=\"Next steps set out to permanently cut business rates for the high street - GOV.UK\" href=\"https:\/\/www.gov.uk\/government\/news\/next-steps-set-out-to-permanently-cut-business-rates-for-the-high-street?utm_source=chatgpt.com\">GOV.UK<\/a>)<\/li>\n<li>According to their guidance, the new multipliers will apply only to <strong>occupied<\/strong> RHL properties \u201cwholly or mainly\u201d used for retail, hospitality or leisure. (<a title=\"4\/2025: Retail, Hospitality and Leisure (RHL) Multipliers - GOV.UK\" href=\"https:\/\/www.gov.uk\/government\/publications\/42025-retail-hospitality-and-leisure-rhl-multipliers\/42025-retail-hospitality-and-leisure-rhl-multipliers?utm_source=chatgpt.com\">GOV.UK<\/a>)<\/li>\n<li>They&#8217;ve made clear in the regulation that <strong>there will be no cash cap<\/strong> for the new RHL multipliers. (<a title=\"Business Rates Multipliers: Qualifying Retail, Hospitality or Leisure - GOV.UK\" href=\"https:\/\/www.gov.uk\/guidance\/business-rates-multipliers-qualifying-retail-hospitality-or-leisure?utm_source=chatgpt.com\">GOV.UK<\/a>)<\/li>\n<li>To fund these lower multipliers, they plan to introduce a <strong>higher multiplier<\/strong> for <em>all<\/em> properties (not just RHL) with RV \u2265 \u00a3500,000. (<a title=\"Business rates: forward look - GOV.UK\" href=\"https:\/\/www.gov.uk\/government\/publications\/business-rates-forward-look\/business-rates-forward-look?utm_source=chatgpt.com\">GOV.UK<\/a>)<\/li>\n<\/ul>\n<\/li>\n<li><strong>Business Communities \/ Trade Bodies<\/strong>\n<ul>\n<li>Some small-business advocates welcome the changes: for instance, <strong>Lewis &amp; Co<\/strong>, a property advisory firm, points out that <em>tens or hundreds of thousands<\/em> of small RHL businesses will benefit. (<a title=\"Lower business rates for retail for hospitality and leisure - Lewis &amp; Co\" href=\"https:\/\/lewisandco.uk.com\/2025\/10\/01\/lower-business-rates-for-retail-for-hospitality-and-leisure\/?utm_source=chatgpt.com\">Lewis &amp; Co<\/a>)<\/li>\n<li>But there is wariness: rising non-RHL multipliers may shift the burden in ways that could hurt property-intensive sectors not covered by the RHL discount.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Economic \/ Property Research (Cushman &amp; Wakefield)<\/strong>\n<ul>\n<li>In their \u201cDecoding Business Rates\u201d report, they model that <strong>retail<\/strong> could see a <em>double benefit<\/em>: lower re-based rateable values (from the 2026 revaluation) <strong>plus<\/strong> lower RHL multipliers. (<a title=\"DECODING\" href=\"https:\/\/assets.cushmanwakefield.com\/-\/media\/cw\/emea\/united-kingdom\/insights\/2025\/decoding-business-rates\/cwdecodingbusinessratesv1.pdf?hash=7CA51A4F86F52072BB4CB0D2D7D42FD2&amp;rev=d68b27116274402191b1ef22186c758c&amp;utm_source=chatgpt.com\">assets.cushmanwakefield.com<\/a>)<\/li>\n<li>However, they also warn: if the \u201chigh-value multiplier\u201d for properties \u2265 \u00a3500,000 is set too high, this could wipe out competitive advantages or impose large costs \u2014 since many properties across sectors will be hit, not just RHL.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"Key_Risks_Trade-offs_and_Strategic_Implications\"><\/span>Key Risks, Trade-offs, and Strategic Implications<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Putting together the case studies and expert views, here are the major <strong>risks and trade-offs<\/strong> worth highlighting:<\/p>\n<ul>\n<li><strong>Anchor Store Risk<\/strong>: Large high-value properties (supermarkets, big gyms, major leisure venues) might take a big hit. If their costs balloon, they might curtail operations or pass costs to consumers, which could undermine footfall on high streets.<\/li>\n<li><strong>Revaluation Uncertainty<\/strong>: The final multiplier rates haven\u2019t been confirmed \u2014 they will be set at the <strong>Budget 2025<\/strong>. (<a title=\"4\/2025: Retail, Hospitality and Leisure (RHL) Multipliers - GOV.UK\" href=\"https:\/\/www.gov.uk\/government\/publications\/42025-retail-hospitality-and-leisure-rhl-multipliers\/42025-retail-hospitality-and-leisure-rhl-multipliers?utm_source=chatgpt.com\">GOV.UK<\/a>) That means some businesses are still modeling \u201cwhat-if\u201d scenarios.<\/li>\n<li><strong>Funding Pressure<\/strong>: The plan is funded by placing more burden on the top 1% of properties by RV, but if that group resists or if assessments change, there is risk the support for RHL could be less generous than expected.<\/li>\n<li><strong>Administrative Complexity<\/strong>: Local Authorities will need to interpret which properties <em>qualify<\/em> (e.g., \u201cwholly or mainly\u201d used for RHL) under the new statutory definition. (<a title=\"Business Rates Multipliers: Qualifying Retail, Hospitality or Leisure - GOV.UK\" href=\"https:\/\/www.gov.uk\/guidance\/business-rates-multipliers-qualifying-retail-hospitality-or-leisure?utm_source=chatgpt.com\">GOV.UK<\/a>) This could lead to disputes.<\/li>\n<li><strong>Cash Flow Timing<\/strong>: There is a gap \u2014 in 2025\/26, the sector gets a <strong>40% relief<\/strong> (capped at \u00a3110,000) as a bridge. (<a title=\"01\/2025: Publication of Business Rates Relief Information\u200b - GOV.UK\" href=\"https:\/\/www.gov.uk\/government\/publications\/012025-publication-of-business-rates-relief-information\/012025-publication-of-business-rates-relief-information?utm_source=chatgpt.com\">GOV.UK<\/a>) Businesses need to plan for that transitional year carefully.<\/li>\n<\/ul>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"Commentary_Summary_Pros_vs_Cons\"><\/span>Commentary Summary: Pros vs Cons<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table>\n<thead>\n<tr>\n<th><strong>Pros \/ Benefits<\/strong><\/th>\n<th><strong>Concerns \/ Criticisms<\/strong><\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>More <em>permanence<\/em> in support (not just annual relief) (<a title=\"Next steps set out to permanently cut business rates for the high street - GOV.UK\" href=\"https:\/\/www.gov.uk\/government\/news\/next-steps-set-out-to-permanently-cut-business-rates-for-the-high-street?utm_source=chatgpt.com\">GOV.UK<\/a>)<\/td>\n<td>Higher burden on very large properties (RV \u2265 \u00a3500k) (<a title=\"Business rates: a declining grade | Estates Gazette\" href=\"https:\/\/www.estatesgazette.co.uk\/legal\/business-rates-a-declining-grade\/?utm_source=chatgpt.com\">estatesgazette.co.uk<\/a>)<\/td>\n<\/tr>\n<tr>\n<td>Removal of cash cap helps <strong>multi-site chains<\/strong> (<a title=\"Government confirms new lower business-rates multipliers for hospitality from April 2026\" href=\"https:\/\/www.morningadvertiser.co.uk\/Article\/2025\/10\/17\/government-confirms-new-lower-business-rates-multipliers-for-hospitality-from-april-2026\/?utm_source=chatgpt.com\">MorningAdvertiser.co.uk<\/a>)<\/td>\n<td>Some small-to-medium RHL firms may still not see a \u201cstep-change\u201d in savings (<a title=\"Government confirms new lower business-rates multipliers for hospitality from April 2026\" href=\"https:\/\/www.morningadvertiser.co.uk\/Article\/2025\/10\/17\/government-confirms-new-lower-business-rates-multipliers-for-hospitality-from-april-2026\/?utm_source=chatgpt.com\">MorningAdvertiser.co.uk<\/a>)<\/td>\n<\/tr>\n<tr>\n<td>Predictability\/long-term certainty for RHL businesses planning capital or staffing<\/td>\n<td>Risk to anchor stores might weaken high-street ecosystems if they pull back, close, or cut investment (<a title=\"Business rates: a declining grade | Estates Gazette\" href=\"https:\/\/www.estatesgazette.co.uk\/legal\/business-rates-a-declining-grade\/?utm_source=chatgpt.com\">estatesgazette.co.uk<\/a>)<\/td>\n<\/tr>\n<tr>\n<td>Supported by a clear legal definition for what qualifies as RHL (<a title=\"Business Rates Multipliers: Qualifying Retail, Hospitality or Leisure - GOV.UK\" href=\"https:\/\/www.gov.uk\/guidance\/business-rates-multipliers-qualifying-retail-hospitality-or-leisure?utm_source=chatgpt.com\">GOV.UK<\/a>)<\/td>\n<td>Complexity and cost for local authorities \/ billing systems to implement the changes (<a title=\"4\/2024: Autumn Budget 2024 - business rates measures - GOV.UK\" href=\"https:\/\/www.gov.uk\/government\/publications\/42024-autumn-budget-2024-business-rates-measures\/42024-autumn-budget-2024-business-rates-measures?utm_source=chatgpt.com\">GOV.UK<\/a>)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"My_Analysis_Key_Take-Aways\"><\/span>My Analysis &amp; Key Take-Aways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>This reform is <strong>important and potentially transformative<\/strong> for the high street. By shifting from temporary relief to a structural multiplier change, the government is signaling long-term support for smaller RHL businesses.<\/li>\n<li>But it&#8217;s <strong>not risk-free<\/strong>: the funding model (higher rates on big properties) could impose very real pain on large-scale RHL or non-RHL premises. If those large players struggle, the knock-on effect could harm broader town-centre vitality.<\/li>\n<li>For <strong>smaller RHL operators<\/strong>, there\u2019s a meaningful opportunity: they should run detailed financial models now, under different possible multiplier settings, to see how much they could save or how their cash-flow will change.<\/li>\n<li>Local authorities and billing software providers should be proactively preparing, because \u201cdetermining eligibility\u201d under the new legal definitions will be non-trivial.<\/li>\n<\/ul>\n<hr \/>\n<ul>\n<li><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<hr \/>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; \u00a0What\u2019s changing From 1 April 2026, the government will introduce new lower business-rates multipliers specifically for RHL properties (shops, hospitality, leisure) with a rateable&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,6],"tags":[],"class_list":["post-970544","post","type-post","status-publish","format-standard","hentry","category-gb-news","category-uk-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Government Releases New Draft Rates for Retail, Hospitality and Leisure Sectors - UK News &amp; 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