How we work out your business rates

Business rates are collected by local authorities to enable those who occupy non-domestic property to contribute towards the cost of local services. The amount you have to pay is based on your property's 'rateable value'.

We use the rateable value and the business rates 'multiplier' to work out how much you owe.

How rateable value works

The Valuation Office Agency (VOA) calculates the rateable value. It's usually based on the:

• Rental value of the property
• Size of the property
• Type of business

The rateable value is shown on the front of your bill.

You can check the rateable value of your property using the GOV.UK link below for finding a business rates valuation.

How we use the multiplier

The multiplier is the number your rateable value is multiplied by to get your final bill. There is a:

• Standard business multiplier
• Small business multiplier – for properties with a rateable value below £51,000

You can check the current multiplier and estimate your business rates online using the GOV.UK link below for calculating your business rates.

From 1 April 2024, the small business multiplier will by default apply to all hereditaments with a rateable value below the multiplier threshold (currently £51,000). This includes properties occupied by charities and unoccupied properties, which did not previously qualify for the small business multiplier.

Changes to business rate multipliers from 1st April 2026

From 1st April 2026, the system will expand to five multipliers. These will reflect both business type and property value. The five new multipliers will apply as follows:

•  Small business RHL multiplier: Retail, hospitality and leisure (RHL) businesses with rateable values (RV) below £51,000
• Small business non-RHL multiplier: Non-RHL businesses with RV below £51,000
• Standard RHL multiplier: RHL businesses with RV between £51,000 and £499,999
• Standard non-RHL multiplier: Non-RHL businesses with RV between £51,000 and £499,999
• Large property multiplier: For all properties with RV of £500,000 and above 

The 2025 Autumn Budget will confirm the exact rates for each multiplier and government will define eligibility for RHL properties, this is expected to align with current RHL relief rules.
We are currently reviewing our property database to determine which multiplier applies to each business. We may contact some ratepayers to request more information where needed.

How revaluation works 

The VOA regularly updates the rateable values of all business and other non-domestic properties in England and Wales to reflect changes in the property market. This is called a ‘revaluation’.

The most recent revaluation came into effect in England and Wales on 1 April 2023. It is based on rateable values from 1 April 2021.

The next revaluation is due to come into effect on 1 April 2026, this will be based on rental values of 1 April 2024. The revaluation will also introduce a new transitional relief scheme to phase in large RV increases.