A worked example
One property in Kent with a rateable value of £30,000, the business's only property. It is not a retail, hospitality or leisure property, and it gets neither transitional relief nor supporting small business relief, so it pays the 1p supplement. Small business rate relief stops at £15,000, so none applies. Below £51,000 of rateable value, the small business multiplier applies.
| The yearly bill | 2026/27, before the Budget | 2027/28, after the Budget | Difference |
|---|---|---|---|
| Small business multiplier | 43.2p | 44.7p | +1.5p |
| Bill: £30,000 × the multiplier | £12,960.00 | £13,410.00 | +£450.00 |
| Transitional relief supplement, 1p | £300.00 | £300.00 | |
| Bill with the supplement | £13,260.00 | £13,710.00 | +£450.00 |
Before the Budget the supplement was due to end on 31 March 2027. Its extension is £300 of the 2027/28 bill; without it the bill would be £13,410.
If the property were a qualifying retail, hospitality or leisure property, the small business multiplier for those properties rises from 38.2p to 39.7p, and its bill increases are capped by CPI inflation in 2027/28 and 2028/29 (except where the rateable value rises because of improvements, or other reliefs are lost).
Other changes from 1 April 2027:
- Small business rate relief for qualifying retail, hospitality and leisure properties: full relief up to £18,000 of rateable value (was £12,000), tapering to nothing at £21,000 (was £15,000). For other properties the thresholds stay at £12,000 and £15,000.
- Pubs, social clubs and live music venues: relief rises from 15% to 35% (not live music venues of £1 million or more).
- Vape shops and adult gaming centres lose the retail, hospitality and leisure multipliers, and vape shops lose small business rate relief.
- The 2026 supporting small business scheme is extended for one year to ratepayers who had the 2023 scheme.
When it takes effect
1 April 2027, for the 2027/28 bills. The supplement is extended for two years from 1 April 2027.
Who it doesn't affect
Properties outside England: these are England's multipliers and reliefs. A property of £12,000 rateable value or less that gets full small business rate relief (£18,000 or less for qualifying retail, hospitality and leisure properties) still pays nothing.
Where this comes from
- Budget 2026: Overview of Tax Legislation and Rates (HMRC), Annex A, Business rates: the England multipliers for 2026/27 and 2027/28 (small business 43.2p and 44.7p; standard 48p and 49.7p; retail, hospitality and leisure 38.2p and 39.7p, 43p and 44.7p; high-value 50.8p and 52.5p) and the £51,000 and £500,000 thresholds
- Budget 2026 (HM Treasury), policy decisions, "Business rates": the 1p Transitional Relief Supplement extended for two years from 1 April 2027; small business rate relief thresholds for retail, hospitality and leisure properties raised to £18,000 and £21,000; their bills capped by CPI in 2027/28 and 2028/29; relief for pubs, social clubs and live music venues raised to 35%; reliefs removed from vape shops and adult gaming centres
- Budget 2026 (HM Treasury), "Supporting high streets and small businesses": who pays the supplement and the support for retail, hospitality and leisure properties
- Small business rate relief (GOV.UK): relief only below £15,000 rateable value, full relief to £12,000
- MHCLG business rates information letter 5/2025: the 1p supplement in 2026/27 where neither transitional relief nor supporting small business relief applies
Every figure on this page comes from the Budget documents published on GOV.UK on , and was checked by Lewis Back ACA. Last updated . It is general information, not advice on your own position.