From April 2026, the Government will introduce one of the most extensive overhauls of the business rates system in decades. While the reforms aim to deliver a fairer and more sustainable framework, they will also bring major consequences for hospitality and leisure operators-many of whom are already navigating a challenging trading environment.

Below, we set out the key changes and what they mean for your business.

A New Multiplier System

The current two-multiplier structure will be replaced by five distinct multipliers, creating greater differentiation based on both property size and sector.

What’s changing?

• Lower multipliers for smaller businesses - designed to ease the burden on SMEs and support local economic growth.
• Sector-specific relief for Retail, Hospitality & Leisure (RHL) - RHL properties will benefit from multipliers 5p below the national rate, providing permanent relief that replaces the temporary schemes extended annually since the pandemic.
• Higher rate for large properties - premises with a rateable value of £500,000 or more will pay 2.8p above the standard multiplier, effectively funding the reductions available to smaller businesses.

Impact on Hospitality & Leisure

The changes are particularly significant for pubs, restaurants, hotels, gyms, cinemas, and other leisure venues.

New RHL multipliers (for properties under £500,000 RV):

• Small Business RHL Multiplier: approx. 38.2p
• Standard RHL Multiplier: approx. 43.0p

This marks a structural shift away from temporary relief measures and provides long-term certainty-something the sector has been calling for.

Transitional Relief

A £3.2 billion transitional relief package will limit annual bill increases following the 2026 revaluation. This is designed to smooth the adjustment period for businesses facing higher liabilities.

Changes if a Property Becomes Vacant

Where an eligible RHL property becomes vacant, it will revert to the standard non-RHL multiplier once any empty property relief has run its course. Operators with fluctuating occupancy should keep this in mind when forecasting costs.

Why This Matters

Hospitality and leisure businesses continue to be under intense pressure. The first half of 2025 saw an average of two site closures per day, driven by rising wage costs, energy volatility, and frozen tax thresholds.

While the new multipliers introduce welcome and permanent relief for qualifying businesses, the wider financial landscape remains demanding. Proactive planning is essential to ensure operators can absorb the changes and maximise the benefits available.

How Parker Walsh Can Help

Understanding how the new framework applies to your properties-and how to plan for the 2026 revaluation-will be critical. Our hospitality and leisure specialists can help you:

• assess how the revised multipliers affect your portfolio
• model future liabilities and cash-flow implications
• identify opportunities to minimise exposure
• navigate transitional relief and eligibility requirements

If you would like tailored advice, please get in touch with our team.

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