National Non-domestic Rates Explanatory Notes 2025/26
Non-Domestic Rates, or business rates, collected by local authorities are the way that those who occupy non-domestic property contribute towards the cost of local services. Under the business rates retention arrangements introduced from 1st April 2013, authorities keep a proportion of the business rates paid locally. The money, together with revenue from council taxpayers, locally generated income, and grants from central government, is used to pay for the services provided by local authorities in your area. Further information about the business rates system may be obtained at www.gov.uk/introduction-to-business-rates or Business rates - Warwick District Council (warwickdc.gov.uk)
Business Rates Instalments
Payment of business rates bills is automatically set on a 10-monthly cycle. However, the Government has put in place regulations that allow ratepayers to require their local authority to enable payments to be made through 12 monthly instalments. If you wish to take up this offer, you should contact Warwick District Council as soon as possible.
National Non-Domestic Rating Multiplier
The local authority works out the business rates bill for a property by multiplying the rateable value of the property by the appropriate non-domestic multiplier. There are two multipliers: the standard non-domestic rating multiplier and the small business non-domestic rating multiplier. The Government sets the multipliers for each financial year, except in the City of London where special arrangements apply.
The Chancellor announced at Autumn Budget 2024 that the government would freeze the small business multiplier at 49.9p while uprating the standard multiplier by CPI inflation. The Local Government Finance Act 1988 (Calculation of Small Business Non-Domestic Rating Multiplier) (England) Regulations 2024 gives effect to this policy.
In accordance with Schedule 7, Part A1, paragraph A7 of the Local Government Finance Act 1988 (the 1988 Act), the Secretary of State has calculated the non-domestic rating multipliers for England for 2025/2026. In line with the requirements of paragraph A7, this business rates information letter provides details on the non-domestic rating multiplier and the small business non-domestic rating multiplier for England for 2025/2026:
a. Non-domestic rating multiplier 55.5p (0.555)
b. Small business non-domestic rating multiplier 49.9p (0.499)
Rateable Value
Apart from properties that are exempt from business rates, each non-domestic property has a rateable value which is set by the Valuation Office Agency (VOA), an agency of Her Majesty’s Revenue and Customs. They compile and maintain a full list of all rateable values, available at www.gov.uk/voa The rateable value of your property is shown on the front of your bill. This broadly represents the yearly rent the property could have been let for on the open market on a particular date specified in legislation. The next revaluation will come into effect on 1 April 2026, based on rental values from 1 April 2024. The VOA may alter the valuation if circumstances change.
Further information about the grounds on which challenges may be made and the process for doing so can be obtained by contacting the VOA, or by consulting the VOA website: Find a business rates valuation - GOV.UK (www.gov.uk)
Revaluation
All non-domestic property rateable values are reassessed at revaluations.
At revaluation, the Valuation Office Agency (VOA) adjusts the rateable value of business properties to reflect changes in the property market. As indicates, the most recent revaluation is referred to above. The next revaluation will come into effect on 1 April 2026, based on rental values from 1 April 2024.
Frequent revaluations ensure the system continues to be responsive to changing economic conditions.
You can Find a business rates valuation - GOV.UK (www.gov.uk)
Business Rate Reliefs
Depending on individual circumstances, a ratepayer may be eligible for a rate relief (i.e. a reduction in their business rates bill). There are a range of available reliefs. Further details are provided below and at www.gov.uk/introduction-to-business-rates and on the Warwick District Council website at Rate relief - Warwick District Council (warwickdc.gov.uk) , or by contacting Warwick District Council.
Temporary Reliefs
Some of the permanent reliefs are set out below but temporary reliefs may be introduced by the Government at a fiscal event. Further detail on current temporary reliefs is available at www.gov.uk/apply-for-business-rate-relief . You should contact Warwick District Council for details on the latest availability of business rates reliefs and advice on whether you may qualify.
Small Business Rates Relief
If a ratepayer’s sole or main property has a rateable value which does not exceed a set threshold, the ratepayer may receive a percentage reduction in their rates bill for the property of up to a maximum of 100%. The level of reduction will depend on the rateable value of the property. For example, eligible properties with a rateable value below a specified lower threshold will receive 100% relief while eligible properties above the lower threshold and below a specified upper threshold may receive partial relief. The relevant thresholds for relief are set by the Government by order and can be obtained on Warwick District Council website Small business rate relief - Warwick District Council (warwickdc.gov.uk) or at www.gov.uk/introduction-to-business-rates.
Generally, these percentage reductions (reliefs) are only available to ratepayers who occupy either - (a) one property, or
(b) one main property and other additional properties providing those additional properties each have a rateable value which does not exceed the limit set by order.
The aggregate rateable value of all the properties mentioned in (b), must also not exceed an amount set by order. For those businesses that take on an additional property which would normally have meant the loss of small business rate relief, they will be allowed to keep that relief for a fixed additional period. Full details on the relevant limits in relation to second properties and the current period for which a ratepayer may continue to receive relief after taking on an additional property can be obtained from Warwick District Council or at www.gov.uk/introduction-to-business-rates.
Certain changes in circumstances will need to be notified to the local authority by the ratepayer who is in receipt of relief (other changes will be picked up by the local authority). The changes which should be notified are –
(a) the property falling vacant,
(b) the ratepayer taking up occupation of an additional property, or
(c) an increase in the rateable value of a property occupied by the ratepayer in an area other than the area of the local authority which granted the relief.
Charity and Community Amateur Sports Clubs
Charities and registered Community Amateur Sports Clubs are entitled to 80% relief where the property is occupied by the charity or the club and is wholly or mainly used for the charitable purposes of the charity (or of that and other charities), or for the purposes of the club (or of that and other clubs). The measure to remove charitable rate relief from those private schools which are charities, is expected to commence from 1 April 2025 subject to enactment of the legislation.
The local authority has discretion to give further relief on the remaining bill. Full details can be found on Warwick District Council website: Rate relief for charities or non profit making organisations - Warwick District Council (warwickdc.gov.uk)
Transitional relief
At a revaluation, some ratepayers will see reductions or no change in their bill whereas some ratepayers will see increases. Transitional relief schemes are introduced at each revaluation to help those facing increases. Transitional relief is applied automatically to bills. Further information about transitional arrangements may be obtained from the local authority, or at www.gov.uk/introduction-to-business-rates
Local Discounts and Hardship Relief
Local authorities have a general power to grant discretionary local discounts and to give hardship relief in specific circumstances. Full details can be found on Warwick District Council website Hardship relief - Warwick District Council (warwickdc.gov.uk)
Unoccupied Property Rating
Business rates are generally payable in respect of unoccupied non-domestic property. However, they are generally not payable for the first three months that a property is empty. This is extended to six months in the case of certain industrial premises, whilst certain other properties such as vacant listed buildings are not liable for business rates until they are reoccupied. Full details on exemptions can be obtained from Warwick District Council website Business rates - Warwick District Council (warwickdc.gov.uk) or from gov.uk at www.gov.uk/apply-for-business-rate-relief
Subsidy Control
The new UK subsidy control regime commenced from 4th January 2023. The new regime enables public authorities, including devolved administrations and local authorities, to deliver subsidies that are tailored for local needs. Public authorities must comply with the UK’s international subsidy control commitments.
The subsidy control legislation provides the framework for the UK-wide subsidy control regime. Further information about subsidy control can be found on the gov.uk website at: https://www.gov.uk/government/collections/subsidy-control-regime
Rating Advisers
Ratepayers do not have to be represented in discussions about the rateable value of their property or their rates bill. However, ratepayers who do wish to be represented should be aware that members of the Royal Institution of Chartered Surveyors (RICS - website www.rics.org ) and the Institute of Revenues, Rating and Valuation (IRRV - website www.irrv.org.uk ) are qualified and are regulated by rules of professional conduct designed to protect the public from misconduct. Before you employ a rating adviser or company you should check that they have the necessary knowledge and expertise, as well as appropriate indemnity insurance. Take great care and, if necessary, seek further advice before entering any contract.
Information Supplied with Demand Notices
Information relating to the relevant and previous financial years regarding the gross expenditure of the local authority is available at www.warwickdc.gov.uk A hard copy is available by contacting Warwick District Council. See the back of your bill for contact details.