Business rates are charged on most non-domestic properties, such as:
- shops
- offices
- pubs
- warehouses
- factories
- holiday rental homes or guest houses
You will probably have to pay business rates if you use a building or part of a building for non-domestic purposes.
The Valuation Office Agency (VOA) may change the value if it believes the circumstances of the property have changed.
National non-domestic rates - government explanatory notes 2025 to 2026
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 1 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 are on:
- the GOV.UK website: Introduction to business rates
- our business rate section
Business rates instalments
Payment of business rate 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 us 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 national non-domestic rating multiplier
- 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.
Ratepayers who occupy a property with a rateable value which does not exceed £50,999 (and who are neither entitled to certain other mandatory relief[s] nor liable for unoccupied property rates) will have their bills calculated using the lower small business non-domestic rating multiplier, rather than the standard non-domestic rating multiplier. 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 inflation. Visit the GOV.UK website for more detail about the 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 to 2026. In line with the requirements of paragraph A7, the non-domestic rating multiplier and the small business non-domestic rating multiplier for England for 2025 to 2026 are:
- non-domestic rating multiplier 55.5p (0.555)
- 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 His Majesty's Revenue and Customs.
The VOA compile and maintain a full list of all rateable values on the VOA website.
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. For the current rating list, this date was set as 1 April 2021.
The VOA may alter the valuation if circumstances change. The ratepayer (and certain others who have an interest in the property) can also check and challenge the valuation shown in the list if they believe it is wrong.
Further information about the grounds on which challenges may be made and the process for doing so can be obtained by going to the GOV.UK website:
- to contact VOA
- read the step-by-step guide on how to check or challenge business rates valuation
Revaluations
All non-domestic property rateable values are reassessed at revaluations. The most recent revaluation took effect from 1 April 2023.
Revaluations ensure that business rates bills are up-to-date and more accurately reflect current rental values and relative changes in rents.
Frequent revaluations ensure the system continues to be responsive to changing economic conditions.
Business rate reliefs
Depending on individual circumstances, a ratepayer may be eligible for a rate relief (that is a reduction in your rates bill).
There are a range of available reliefs.
Further details can be found on:
- our types of business rate relief page
- the GOV.UK website: Introduction to business rates
Temporary reliefs
Some of the permanent reliefs are set out below but other temporary reliefs may be introduced by the Government at a fiscal event.
Further detail on current temporary reliefs are on the GOV.UK website.
You should contact us for details on the latest availability of business rates reliefs and advice on whether you may qualify.
Small business rate 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 this property of up to a maximum of 100 percent.
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 by contacting us or reading the GOV.UK website: Introduction to business rates
Generally, these percentage reductions (reliefs) are only available to ratepayers who occupy either:
- one property
- 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 the second bullet point, 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 by contacting us or reading the GOV.UK website: small business rate relief
Certain changes in circumstances will need to be notified to us by the ratepayer who is in receipt of relief (other changes will be picked up by us).
The changes which should be notified are:
- the property falling vacant
- the ratepayer taking up occupation of an additional property
- 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 Club Relief
Charities and registered Community Amateur Sports Clubs are entitled to 80 percent 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).
We have a discretion to give further relief on the remaining bill. Full details can be obtained by contacting us.
Transitional rate 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 and other reliefs may be obtained by contacting us or reading the GOV.UK website: transitional rate relief.
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 obtained by contacting us.
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 by contacting us or reading the GOV.UK website: apply for business rate relief.
Subsidy control
The new UK subsidy control regime started on 4 January 2023.
It enables public authorities, including devolved administrations and local authorities, to deliver subsidies that are tailored for local needs.
Public authorities giving subsidies must comply with the UK’s international subsidy commitments. The subsidy control legislation provides the framework for a new, UK-wide subsidy control regime.
Further information about subsidy control can be found on the GOV.UK website.
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, whose details can be found on their website, and the Institute of Revenues, Rating and Valuation 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 into any contract.
Information supplied with demand notices
Information relating to the relevant and previous financial years regarding the gross expenditure of Cumberland Council is available online.
A hard copy is available on request, please use the contact details on your bill.
Contact us for further information
Further information about reliefs, traditional arrangements and exemptions, contact the Business Rates team in your area.