Retail, Hospitality & Leisure
A discount may apply for occupied retail, hospitality and leisure properties
Business Rates Update from April 2026 – Retail, Hospitality & Leisure (RHL)
From April 2026, existing Business Rate Relief for retail, hospitality, or leisure properties will be replaced by a lower rates multiplier to calculate the business rates payable on those properties.
Properties that will benefit from the lower multipliers
Properties that are wholly or mainly used for qualifying retail, hospitality or leisure purposes will qualify for the RHL multiplier. This is a test on the use of the property, not just on the valuation description applied by the Valuation Office Agency.
Retail, hospitality, or leisure properties will qualify for one of two new multipliers:
Small business RHL multiplier: for qualifying properties with a rateable value of under £51,000.
Standard RHL multiplier: for qualifying properties with a rateable value between £51,000 and £499,999.
Properties that will not qualify for the lower multipliers
- unoccupied properties – these will revert to the national multipliers after Empty Property Relief ends, even if they are intended to next be used for RHL purposes
- properties with a rateable value of £500,000 or above, even if used for a qualifying RHL purpose
From 2026 the RHL multipliers are not a ‘relief’ and will be applied in accordance with government regulations. For further information on qualifying and excluded properties, please visit the GOV.uk website.
Do I Need to Apply?
In most cases, Gloucester City Council will check what your property is used for and determine the multiplier to use when calculating your business rates bill.
But if you think your business should qualify and it hasn’t been recognised yet, we can help you check your eligibility and update our records.
Please contact us at BR@gloucester.gov.uk. Please include the word ‘reference’ and your Business Rates account reference number (10 digits starting with 060) in the subject of your email. for example: ‘Reference number 060XXXXXXXX’.
Retail, Hospitality and Leisure Relief Scheme 2025/26
To qualify the property must be occupied and mainly used:
- As shops
- As restaurants, cafes, bars or pubs
- As a cinema or live music venue
- For assembly and leisure or
- As hotels, guest and boarding premises and self-catering accommodation
A 40% relief will apply from 1 April 2025 to 31 March 2026, up to a cash cap limit of £110,000 per business.
The Retail, Hospitality and Leisure Scheme Policy can be found in the 'Document download' section.
How do I apply?
If the discount/relief is not showing on your bill, but you believe you are eligible, please contact us at BR@gloucester.gov.uk. Please include the word ‘reference’ and your Business Rates account number in the subject of your email. For example, 'Reference [Your Business Rates number]'.
Cash Cap and Subsidy Control
The Retail Hospitality and Leisure Business Rates Relief Scheme is likely to amount to subsidy. Any relief provided by Local Authorities under this scheme will need to comply with the UK’s domestic and international subsidy control obligations. Ratepayers will be asked to corroborate that they are eligible for the relief and that they are aware of their duty to comply with subsidy rules. Further guidance can be found here Statutory Guidance for the United Kingdom Subsidy Control Regime
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