Politics · United Kingdom · 9 hrs ago
UK raises business property tax discounts by £33m after revising rates
The UK Government revised business property tax rates days after issuing guidance to councils in England.
The changes affect retail, hospitality and leisure firms, which were due to receive a discount in the tax calculation multiplier.
Officials said inflation would otherwise reduce the value of that discount, so the national multiplier will rise from 5p to 5.2p next April.
The small-business rate was revised from 39.7p to 39.5p, and the standard rate from 44.7p to 44.5p.
The correction means businesses will receive £33 million more in discounts than councils were initially told.
It matters because firms had begun planning around the original figures, and a property tax expert said the change came after the rates were published on Budget Day.
The Government said the new guidance applies inflation adjustments consistently, but it has not said whether the original figures contained an error or an omission.
The Government revised business property tax discounts, adding £33 million in discounts for high street businesses.
The change followed guidance to councils that had not accounted for inflation.
The national multiplier discount will rise from 5p to 5.2p next April.
The small-business retail, hospitality and leisure multiplier was revised from 39.7p to 39.5p, while the standard multiplier fell from 44.7p to 44.5p.
Tax expert Alex Probyn welcomed the correction but said businesses had begun planning around the earlier figures.
- Who
- The UK Government revised the discounts. Retail, hospitality and leisure businesses are affected.
- What
- The Government increased the total discounts by £33 million and changed the relevant tax multipliers.
- When
- The correction was issued the weekend before the article was published on November 8, 2026. The revised national multiplier takes effect next April.
- Where
- The discounts apply across the UK; the original guidance was issued to councils in England.
- Why
- The original figures did not account for inflation. The Government said the revision applies inflation adjustments consistently and reflects its policy intention.
This story does not have two clearly opposing sides.
The Government issued the original business property tax discount figures.
The Government issued corrected guidance to councils after the original figures failed to account for inflation.
The national multiplier discount is set to increase from 5p to 5.2p.
- Additional discounts
- £33 million
- Inflation rate
- 3.5% recorded in September
- National multiplier discount
- 5p to 5.2p next April
- Small-business RHL multiplier
- 39.7p to 39.5p
- Standard RHL multiplier
- 44.7p to 44.5p
What people are saying
the correction is welcome
Increasing the discount protects its value against inflation and is good news for retail, hospitality and leisure businesses,
Businesses should have been given the correct figures on Budget Day.