Correspondence

4/2025: Retail, Hospitality and Leisure (RHL) Multipliers

Published 17 November 2025

Applies to England

To: Chief Finance Officers of English Billing Authorities - For the attention of the Business Rates section

From: Non-Domestic Rates Team, LGF - Local Taxation, Ministry of Housing, Communities and Local Government (ndr@communities.gov.uk)

Date: 17 November 2025

For the attention of the business rates section

Dear Chief Finance Officer

Business Rates Information Letter (4/2025): Retail, Hospitality and Leisure Multiplier

This is the fourth business rates information letter to be issued by the Ministry of Housing, Communities and Local Government in 2025. Previous letters are available on the internet at: 

https://www.gov.uk/government/collections/business-rates-information-letters 

or for archived letters: 

http://webarchive.nationalarchives.gov.uk/20120919132719/http:/www.communities.gov.uk/localgovernment/localgovernmentfinance/businessrates/busratesinformationletters/. 

This letter covers:   

• Retail, Hospitality and Leisure (RHL) Multipliers
• Empty Properties and the RHL Multipliers
• Valuation Office Agency, local authority communication and draft list

Retail, Hospitality and Leisure (RHL) Multipliers

Following the Non-Domestic Rating (Multipliers and Private Schools) Act 2025, on the 16 October HM Treasury laid connected regulations. These regulations define those property uses eligible for the new Retail, Hospitality and Leisure (RHL) multipliers (which broadly mirror the existing RHL relief) and will come into force on 1 April 2026. Alongside these regulations, HM Treasury has published guidance to help local authorities interpret the legislation. The level of the 2026-27 multipliers will be announced by the Chancellor at the Budget on 26 November, with formal notification communicated via a BRIL. The RHL regulations and guidance can be found at:

• The Non-Domestic Rating (Definition of Qualifying Retail, Hospitality or Leisure Hereditament) Regulations 2025.
• https://www.gov.uk/guidance/business-rates-multipliers-qualifying-retail-hospitality-or-leisure.

Local authorities should review the regulations and guidance and engage their software suppliers to prepare for annual billing. In line with the demand notice regulations, authorities should make preparations to ensure that all 5 multipliers are shown on the face of demand notices.

Empty Properties and the RHL multipliers

Local authorities should note that, in-line with the previous RHL relief policy, the RHL multiplier regulations provide that where a property benefiting from an RHL multiplier becomes vacant, it will revert to the relevant non-RHL multiplier after any empty property relief ends.

VOA Local Authority Comms and Draft List

Following the announcement of the new business rates multipliers at the Budget, the Valuation Office Agency (VOA) will publish the 2026 draft rating list and the business rates estimator, a tool to help ratepayers to understand their likely rates liability for 2026/27. To support engagement, the VOA has issued a revaluation communication pack to help local authorities answer queries from ratepayers.

The VOA intends to provide a ratings list schedule to local authorities on Monday 17 November, with the next schedule being issued on Friday 28 November. Normal schedule service will then resume as per the published calendar. Local Authorities should note that any amendments made to the draft list after Friday 14 November will be actioned but will not be visible until the publication of the schedule on 28 November. VOA systems will be temporarily offline on November 26.