The Local Government Finance Act 1988 (Prescription of Non-Domestic Rating Multipliers) (England) Regulations 2026

Made: 23rd February 2026

Coming into force: 1st April 2026

The Treasury make these Regulations in exercise of the powers conferred by sub-paragraphs (9)(a), (9B) and (10)(a) of paragraph 10 of Schedule 4ZA, sub-paragraphs (6)(a), (6A) and (7)(a) of paragraph 3 of Schedule 4ZB, and sub-paragraphs (8)(a)(i), (8A) and (9)(a) of paragraph 6 of Schedule 5A to the Local Government Finance Act 1988[^f00001].

A draft of these Regulations has been laid before Parliament in accordance with subsections (7B), (7D) and (7F) of section 143 of the Local Government Finance Act 1988[^f00002] and approved by resolution of each House of Parliament.

Citation, extent, application and commencement

1

• (1) These Regulations may be cited as the Local Government Finance Act 1988 (Prescription of Non-Domestic Rating Multipliers) (England) Regulations 2026.

• (2) These Regulations extend to England and Wales and apply in relation to England only.

• (3) These Regulations apply in relation to financial years beginning on or after 1st April 2026.

• (4) These Regulations come into force on 1st April 2026.

Interpretation

2

In these Regulations—

• “the Act” means the Local Government Finance Act 1988;

• “high-value multiplier”, in relation to a chargeable day and a billing authority, means the multiplier with that description calculated for that day and that authority in accordance with regulations under paragraph A6A(1)(a) or 9B(1)(a)(i) (other higher non-domestic multipliers) of Schedule 7 to the Act[^f00003];

• “RHL hereditament”, in relation to a chargeable day, means a hereditament which is a qualifying retail, hospitality or leisure hereditament for that day[^f00004];

• “small business RHL multiplier”, in relation to a chargeable day and a billing authority, means the multiplier with that description calculated for that day and that authority in accordance with regulations under paragraph A6A(1)(b) or 9B(1)(a)(ii) (other lower non-domestic multipliers) of Schedule 7 to the Act;

• “standard RHL multiplier”, in relation to a chargeable day and a billing authority, means the multiplier with that description calculated for that day and that authority in accordance with regulations under paragraph A6A(1)(b) or 9B(1)(a)(ii) of Schedule 7 to the Act.

Local rating: occupied hereditaments

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• (1) Paragraphs (2) to (5) apply for the purposes of paragraphs 1 (chargeable amount before any reliefs), 2(1) (charitable rate relief) and 3 (improvement rate relief) of Schedule 4ZA to the Act.

• (2) For any chargeable day and any billing authority, M[^f00005] is prescribed as the small business RHL multiplier in relation to an RHL hereditament if for that day A is less than £51,000.

• (3) For any chargeable day and any billing authority, M is prescribed as the standard RHL multiplier in relation to an RHL hereditament if for that day A is—

• (a) £51,000 or more, but

• (b) less than £500,000.

• (4) For any chargeable day and any billing authority, M is prescribed as the high-value multiplier in relation to a hereditament if for that day A is £500,000 or more.

• (5) For any chargeable day for which none of paragraphs (2) to (4) apply in relation to a hereditament—

• (a) M is prescribed as D if for that day A is less than £51,000, and

• (b) in any other case M is prescribed as B.

• (6) For the purpose of paragraph 4(1)[^f00006] (small business rate relief) of Schedule 4ZA to the Act, for any chargeable day and any billing authority—

• (a) M is prescribed as the small business RHL multiplier in relation to an RHL hereditament, and

• (b) in any other case M is prescribed as D.

Local rating: unoccupied hereditaments

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• (1) Paragraphs (2) and (3) apply for the purposes of paragraph 1(1) and (2)(a) (chargeable amount before any reliefs) of Schedule 4ZB to the Act.

• (2) For any chargeable day and any billing authority, M[^f00007] is prescribed as the high-value multiplier in relation to a hereditament if for that day A is £500,000 or more.

• (3) For any chargeable day for which paragraph (2) does not apply in relation to a hereditament—

• (a) M is prescribed as D if for that day A is less than £51,000, and

• (b) in any other case M is prescribed as B.

Central rating

5

• (1) Paragraphs (2) and (3) apply for the purposes of paragraphs 1 (chargeable amount before any reliefs), 2(4) (charitable rate relief), 3 (improvement rate relief) and 4(4) (unoccupied hereditaments rate relief) of Schedule 5A to the Act.

• (2) For any chargeable day, M[^f00008] is prescribed as the high-value multiplier in relation to a hereditament if for that day A is £500,000 or more.

• (3) For any chargeable day for which paragraph (2) does not apply in relation to a hereditament—

• (a) M is prescribed as D if for that day A is less than £51,000, and

• (b) in any other case M is prescribed as B.

Amendment of the Local Government Finance Act 1988 (Prescription of Non-Domestic Rating Multipliers) (England) Regulations 2024

6

After regulation 1(2) (application) of the Local Government Finance Act 1988 (Prescription of Non-Domestic Rating Multipliers) (England) Regulations 2024[^f00009] insert—

(2A) These Regulations do not apply to financial years beginning on or after 1st April 2026.

Signed

Gen Kitchen — Christian Wakeford — Two of the Lords Commissioners of His Majesty's Treasury — 23rd February 2026

Explanatory note

(This note is not part of the Regulations)

Explanatory Note

In relation to England, a ratepayer’s liability to a non-domestic rate as regards a hereditament is determined in accordance with the Local Government Finance Act 1988 (c. 41). Liability as regards occupied local rating properties, unoccupied local rating properties and central rating is determined in accordance with formulae in Schedules 4ZA, 4ZB and 5A to that Act.

For the purposes of particular provisions in those Schedules, the Treasury have the power to prescribe in regulations the multiplier that is used in the formulae. In relation to local rating occupied hereditaments, regulation 3 provides that the following multipliers will apply:

• for RHL hereditaments (meaning retail, hospitality or leisure hereditaments as defined in the Non-Domestic Rating (Definition of Qualifying Retail, Hospitality or Leisure Hereditament) Regulations 2025 (S.I. 2025/1093)) with an applicable rateable value of less than £51,000 (including those eligible for small business rate relief), the small business RHL multiplier;

• for RHL hereditaments with an applicable rateable value that is £51,000 or more but less than £500,000, the standard RHL multiplier;

• for any hereditament that has an applicable rateable value of £500,000 or more, the high-value multiplier;

• for any other hereditaments, the small business non-domestic rating multiplier will apply if the applicable rateable value is less than £51,000, but otherwise the non-domestic rating multiplier will apply.

Regulation 4 (in relation to local rating unoccupied hereditaments) and regulation 5 (in relation to central rating hereditaments) provide that:

• the high-value multiplier will apply to a hereditament if the applicable rateable value is £500,000 or more;

• for any other hereditaments, the small business non-domestic rating multiplier will apply if the applicable rateable value is less than £51,000, but otherwise the non-domestic rating multiplier will apply.

Regulation 6 amends the Local Government Finance Act 1988 (Prescription of Non-Domestic Rating Multipliers) (England) Regulations 2024 (S.I. 2024/111) so that those Regulations will not apply to financial years beginning on or after 1st April 2026.

An impact assessment has not been produced for this instrument because it amends an existing local tax regime. Publication of a full impact assessment is not necessary for such legislation.

Footnotes

[^f00001]: 1988 c. 41. Schedules 4ZA, 4ZB and 5A were inserted by sections 1(3), 2(4) and 3(3) of the Non-Domestic Rating Act 2023 (c. 53) and amended by section 11 of the Local Government Finance (Wales) Act 2024 (asc 6) and section 3 of the Non-Domestic Rating (Multipliers and Private Schools) Act 2025 (c. 12). The amendments made by the Non-Domestic Rating Act 2023 have effect in relation to financial years beginning on or after 1st April 2024 (see section 19(2)(a) of that Act) and the amendments made by the Non-Domestic Rating (Multipliers and Private Schools) Act 2025 have effect in relation to financial years beginning on or after 1st April 2026 (see section 6(1) of that Act).

[^f00002]: Subsections (7B), (7D) and (7F) of section 143 were inserted by paragraph 8(c) of the Schedule to the Non-Domestic Rating Act 2023. Those amendments have effect in relation to financial years beginning on or after 1st April 2024 (see section 19(2)(b) of that Act).

[^f00003]: Paragraphs A6A and 9B were inserted by sections 1(3) and 2(2) of the Non-Domestic Rating (Multipliers and Private Schools) Act 2025. Those amendments have effect in relation to financial years beginning on or after 1st April 2026 (see section 6(1) of that Act).

[^f00004]: The term “qualifying retail, hospitality or leisure hereditament” is defined in the Non-Domestic Rating (Definition of Qualifying Retail, Hospitality or Leisure Hereditament) Regulations 2025 (S.I. 2025/1093).

[^f00005]: The terms A, B, D and M are defined for the purposes of Schedule 4ZA to the Local Government Finance Act 1988 in paragraph 10(2), (3), (5) and (9) of that Schedule.

[^f00006]: Paragraph 4(1) was substituted by section 11(1) and (2)(b) of the Local Government (Wales) Act 2024.

[^f00007]: The terms A, B, D and M are defined for the purposes of Schedule 4ZB to the Local Government Finance Act 1988 in paragraph 3(2), (3), (5) and (6) of that Schedule.

[^f00008]: The terms A, B, D and M are defined for the purposes of Schedule 5A to the Local Government Finance Act 1988 in paragraph 6(2), (3), (5) and (8) of that Schedule.

[^f00009]: S.I. 2024/111.