From April 2026, significant changes to the UK business rates system will come into effect, impacting retail, hospitality and leisure businesses across England. After several years of temporary relief schemes, the government is moving towards a more permanent approach, one that café owners and hospitality operators need to be prepared for.
Business rates are often one of the largest fixed costs for cafés, restaurants and hospitality venues. While they don’t always get the same attention as wages or energy prices, even small changes can have a noticeable effect on profitability. With the current relief schemes ending and new valuations on the way, now is the right time to understand what’s changing and what it could mean for your business.
What are business rates?
Business rates are a tax charged on most non-domestic properties, including cafés, restaurants, bars and hospitality venues. They are calculated based on a property’s rateable value, which is an estimate of the annual rent the property could achieve on the open market.
The rateable value is then multiplied by a government-set multiplier to determine how much business rates a business pays each year. In simple terms, the higher the rateable value and multiplier, the higher the rates bill.
Because business rates are a fixed cost tied to the property rather than trading performance, they can place pressure on hospitality businesses during periods of rising costs or fluctuating demand.
Temporary relief is coming to an end
Since the pandemic, many retail, hospitality and leisure businesses have benefited from temporary business rates discounts. These relief schemes played an important role in helping businesses manage rising costs, disrupted trading patterns and changes in customer behaviour.
However, this support is coming to an end. The current relief programme will finish on 31 March 2026. From April onwards, businesses will move onto a new, longer-term system rather than rolling short-term discounts.
For many cafés and hospitality operators, this could mean a noticeable increase in annual business rates bills, particularly for those that have relied heavily on relief in recent years.
Updated valuations from April 2026
Business rates are calculated using a property’s rateable value. This figure represents the Valuation Office Agency’s estimate of the annual rent a property could achieve on the open market.
From April 2026, new rateable values will apply following a national revaluation. These updated valuations are based on market conditions as of April 2024.
The impact will vary from business to business:
- Properties in areas where rental values have risen may see higher rateable values and higher bills
- Businesses in locations where rents have stagnated or fallen may benefit from reductions
This is one of the most important changes for hospitality professionals to be aware of. Even if your business hasn’t changed, your rates bill might. Reviewing your new rateable value when it becomes available is essential, and professional advice should be sought if you believe it doesn’t accurately reflect your property.
Additional rates multipliers explained
Alongside the revaluation, the government is introducing a new system of business rates multipliers from 2026. These multipliers are used to calculate how much tax is paid on a property once the rateable value has been set.
Under the new structure, smaller retail, hospitality and leisure properties are expected to benefit from lower multipliers whilst larger properties may face higher multipliers, increasing their overall rates liability
The aim is to create a more stable and predictable system than the temporary relief schemes of recent years. However, the real-world impact will still depend on a combination of property size, location and rateable value.
| Category | Rateable Value (RV) | Multiplier |
|---|---|---|
|
Small Business RHL |
Below £51,000 | 38.2p |
| Standard RHL | £51,000 – £499,999 | 43.0p |
| Large (All Properties) | £500,000 and above |
50.8p |
| Small Business (Non-RHL) | Below £51,000 | 43.2p |
| Standard (Non-RHL) | £51,000 – £499,999 | 48.0p |
*Source, Amber Valley Public Council
What hospitality business can do now
The fact that you're reading this article and educating yourself on the changes is a fantastic first step. In order to better prepare your business, there are a number of simple steps you should take to minimise impact.
Start by reviewing your property details and understanding how business rates are currently calculated for your site. When new rateable values are issued, check them carefully and challenge them if they appear inaccurate.
It’s also wise to speak with your accountant or advisor about how changes to business rates could affect cash flow and long-term budgeting. For tenants, reviewing lease terms is important, particularly where responsibility for business rates sits with the occupier rather than the landlord.
Above all, business rates should be considered as part of a wider picture of fixed costs. While they can’t be easily controlled or negotiated, understanding them early allows you to plan more effectively and make informed decisions elsewhere in the business.
Planning ahead with confidence
The 2026 business rates changes mark a shift away from short-term relief and towards a more permanent system. For café owners and hospitality operators, the key is preparation rather than panic.
By understanding what’s changing, reviewing valuations carefully and factoring potential increases into future planning, businesses can put themselves in a stronger position to absorb rising fixed costs and continue operating sustainably.
At Bridge Coffee Roasters, we work with hospitality businesses that are navigating exactly these kinds of challenges. As costs evolve across the industry, having clarity and control over your wider operation becomes increasingly important. Being informed now gives you more options later.
Effectively Manage your Coffee Program with Bridge Coffee
While business rates and other fixed costs may sit outside your control, your coffee offering is one area where strategic decisions can directly influence profitability. From improving drink margins and reducing waste to selecting the right equipment for operational efficiency, a well-structured coffee programme can help offset rising overheads and strengthen your bottom line.
At Bridge Coffee Roasters, we support hospitality operators in building commercially resilient coffee setups. Whether that means reviewing your current equipment, refining your menu for stronger margins, or developing a private label blend that enhances perceived value, our focus is always on helping you operate more efficiently and profitably. In a changing cost landscape, small operational improvements can make a meaningful difference.
