‘All five multipliers must now be shown’ as hospitality sector braces for Budget

England’s pubs, restaurants and drinks-led venues are being urged to prepare for sweeping changes to business rates as new hospitality, retail and leisure multipliers take effect from April 2026. Local authorities have been instructed to ready billing systems ahead of the Budget announcement on 26 November.

A new suite of hospitality, retail and leisure multipliers will come into force on 1 April 2026, according to the Ministry of Housing, Communities and Local Government. The rules were set out after HM Treasury laid regulations connected to the Non Domestic Rating Act 2025, as per the letter.

The Government has defined which property uses qualify, mirroring the existing RHL relief categories. HM Treasury has also issued guidance to assist local authorities in interpreting the regulations, as reported by the department.

At the centre of the administrative shake up is the instruction that all five business rates multipliers must appear on 2026 demand notices. This means local authorities must display every multiplier that exists in the national system on the front of each rates bill, even when only one applies to the property being billed. The change is framed as a transparency measure but will require councils to adapt software and layouts, which is why they have been told to engage suppliers now. For operators reading their bills from next spring, it will mean a more detailed breakdown rather than any alteration to the amount owed.

The level of the 2026 to 2027 multipliers will be confirmed by the Chancellor at the Budget on 26 November, with formal notification to follow via a business rates information letter.

Return to non RHL multipliers for empty venues

The department states that properties which receive an RHL multiplier but subsequently fall vacant will revert to the appropriate non RHL multiplier once any empty property relief period expires. This mirrors the treatment under the previous RHL relief regime.

For bar, pub and restaurant operators planning refurbishments or temporary closures, the reminder serves as a warning that any preferential rates tied to trading status will fall away swiftly once a property becomes empty.

New VOA draft list due after Budget announcement

Once the new multipliers are announced, the Valuation Office Agency will publish the 2026 draft rating list alongside an updated business rates estimator to help ratepayers assess their likely liability for 2026 to 2027, according to the letter.

The VOA has issued a revaluation communication pack to local authorities to help them handle enquiries from ratepayers, many of whom are expected to seek clarity given the continuing cost pressure on hospitality.

The agency has said it plans to provide schedule updates on 17 November and 28 November. Any amendments made to the draft list after 14 November will be processed but not visible until 28 November. The VOA’s systems will be offline on 26 November.

Hospitality coalition urges Budget action

As previously reported by the drinks business, 345 hospitality businesses have written an open letter to the Chancellor calling for urgent support ahead of the Budget. The signatories, coordinated by UKHospitality, include major pub, bar and restaurant groups such as Greene King, Stonegate Group, Big Table Group, Loungers, Wagamama and Marston’s, alongside hotels, leisure parks and visitor attractions. The letter asks the Government to lower business rates for hospitality properties under £500,000 rateable value without penalising larger venues, fix NICs to support job creation and cut VAT to improve the sector’s competitiveness with European markets. UKHospitality chair Kate Nicholls said the sector has been “taxed out” and warned that closures, job losses and rising prices seen since the last Budget will intensify without action.

Related news

'You can't subsidise people into jobs that don't exist', as hospitality assesses £725m reform

Reeves accused of ‘smoke and mirrors’ over hospitality tax rises

Hospitality must sell 29.5 million extra pints a day to cover Budget