From 1 April 2026, one of the most significant changes to the UK’s business rates system in decades will come into force.
For many high-street businesses — including salons, spas and beauty retailers — the changes will reshape how rates are calculated and what support is available.
The shift marks a move away from temporary relief schemes introduced in recent years and towards a new, permanent structure intended to support high-street sectors. While the reforms bring some long-term certainty, the transition will also coincide with a nationwide revaluation of properties — meaning some businesses may see significant changes to their bills.
Here’s what the overhaul means for the beauty industry.
A new system for high-street businesses
The UK Government is replacing temporary retail reliefs with permanent tax multipliers for Retail, Hospitality and Leisure (RHL) properties with a rateable value below £500,000.
Previously, many salons and beauty retailers benefitted from temporary discounts such as the Retail, Hospitality and Leisure relief scheme. Under the new structure, any support will instead be built directly into the rates system and automatically applied to your bill.
The updated multipliers are as follows:
| Property Category | Rateable Value (RV) | Multiplier (Pence per £1) |
| Small Business RHL | Below £51,000 | 38.2p |
| Small Business (Other) | Below £51,000 | 43.2p |
| Standard RHL | £51,000 – £499,999 | 43.0p |
| Standard (Other) | £51,000 – £499,999 | 48.0p |
| Large Properties | £500,000 and above | 50.8p |
Why are some businesses seeing increases?
These changes come at the same time as the 2026 nationwide property revaluation, carried out by the Valuation Office Agency.
The revaluation updates the rateable value of commercial properties to reflect current market conditions. For some businesses, this has resulted in sharp increases — in some cases up to four times their previous bill.
In an attempt to prevent sudden financial shocks, the Government has introduced a transitional support package designed to limit how quickly bills can rise.
Are you eligible for support?
You are likely to qualify for additional support if:
- Your rateable value has increased following the 2026 revaluation.
- You previously received relief, such as Small Business Rate Relief or the 40% Retail, Hospitality and Leisure relief, which is now ending or reducing.
How do the new reliefs work?
If your previous relief is being removed or reduced, the Government will cap how much your bill can increase in the first year.
Two calculations are considered, and the one that allows the larger increase is applied:
- A flat £800 increase compared with your previous bill, or
- A percentage cap based on last year’s bill
The percentage cap depends on the size of your property.
| Property Size | Rateable Value (RV) | 2026/27 Increase Cap |
| Small | Up to £20,000 (£28,000 in London) | 5% |
| Medium | £20,001 – £100,000 | 15% |
| Large | Over £100,000 | 30% |
These protections are applied automatically by your local council, meaning most businesses do not need to submit an application.
How to check your status
If you want to understand how the changes might affect your business, there are a few simple steps you can take:
- Check your new rateable value
You can find this using the valuation search tool on the GOV.UK “Find a business rates valuation” service - Estimate your future bill
The Government’s online calculator allows you to estimate your potential business rates under the new system. GOV.UK “Estimate your business rates” service - Contact your local council if needed
If you believe your property has been incorrectly categorised — particularly regarding its Retail, Hospitality or Leisure status — your local authority’s business rates department can review this. Find your local council here.
What else is changing?
Alongside the structural changes, there are a few additional measures to be aware of that could benefit growing businesses include:
- Previously, businesses that opened a second property could lose their Small Business Rate Relief after just 12 months. From April 2026, this grace period will be extended to three years, giving businesses more time to establish a new location before facing higher rates.
- Businesses that invest in qualifying improvements — such as extensions or significant refurbishments — may also benefit from a 12-month exemption from any rates increase resulting from those improvements.
The aim is to encourage investment in high-street premises without immediately increasing tax bills. Find out more here.
What happens next?
The British Beauty Council continues to engage with the Government on behalf of the sector. In particular, we are urging policymakers to ensure that hair and beauty SMEs receive the same level of protection being considered for other high-street businesses, including pubs.
We are also highlighting the importance of ensuring that the 2026 revaluations reflect the true economic conditions facing today’s high-street service businesses, rather than property market shifts that do not accurately reflect profitability.
The beauty industry contributes £30.4BN to the UK economy and supports hundreds of thousands of skilled professionals across the country. As these reforms take effect, the Council remains committed to working with the Government to ensure the sector receives the fair recognition and support it deserves.
FAQs
When do the changes start?
The new rateable values and updated relief schemes begin on 1 April 2026. Businesses will receive their 2026/27 business rates bill in March 2026.
Do I need to apply for Transitional Relief or Supporting Small Business Relief?
In most cases, no application is required. Your local council will automatically calculate and apply the relief to your bill.
How can I check my new rateable value?
You can view your future valuation using the “Find a business rates valuation” service.
What if I believe my valuation is incorrect?
Businesses have until 31 March 2026 to request changes to their current valuation. After that date, challenges can only be made against the new 2026 valuation.
I previously received the 40% Retail, Hospitality and Leisure relief — am I protected?
Yes. The Supporting Small Business Relief scheme has been expanded to help businesses losing this relief. It ensures bills cannot rise by more than £800 or the relevant percentage cap in the first year. Find more information here.
Who should I contact if there is an error on my bill?
For valuation issues, contact the Valuation Office Agency. For billing queries or relief applications, contact your local council’s business rates department.
