Sector guide · England and Wales · 2026/27

Business rates for shops (2026/27)

Shops pay business rates on their rateable value, usually set by Zone A pricing of the sales area. In England for 2026/27 most shops under £51,000 use the lower 38.2p retail, hospitality and leisure multiplier; in Wales, shops under £51,000 use a 35p retail multiplier. A single small shop worth £12,000 or less pays nothing in England.

Which multiplier applies

GOV.UK lists shops among the businesses that can use the lower retail, hospitality and leisure multipliers (38.2p under £51,000, 43p from £51,000 to £499,999). Your council confirms eligibility.

Rateable value (England, 2026/27)	Standard	Retail, hospitality and leisure
Under £51,000	43.2p	38.2p
£51,000 to £499,999	48p	43p
£500,000 or more	50.8p	50.8p

How shops are valued

Shops are usually valued by zoning: the front 6.1 metres of sales space (Zone A) at the full price per m², then reducing fractions further back, plus storage and ancillary space at their own rates. Frontage, depth and the position on the street all matter, which is why comparing with shops on the same stretch of street is the best test.

Reliefs to ask about

Small business rate relief: nothing to pay in England if it’s your business’s only property and the rateable value is £12,000 or less; tapering to £15,000.
Supporting small business relief if you lost relief at the 2026 revaluation, and transitional relief if your bill is rising because of it.
Check that the floor areas and zones in your summary valuation match the shop (sales space vs storage is a common mistake).
Charity shops may get charitable rate relief instead of small business rate relief.
Empty shops: empty property relief usually gives 3 months free.

Is your shop rateable value in line with similar properties?

Compare your 2026 rateable value with similar properties nearby. About 30 seconds, no sign-up, no card.

Estimate your bill with the 2026/27 business rates calculator, or read how to challenge a valuation.

Questions

Do small shops pay business rates?

In England a shop that is the business’s only property pays nothing if its rateable value is £12,000 or less, with relief tapering to £15,000. Above that it pays rateable value × 38.2p (if eligible for the retail, hospitality and leisure multiplier) for values under £51,000.

What is the retail multiplier in Wales?

35p for 2026-27, for shops, kiosks, pharmacies and post offices with a rateable value under £51,000. Larger shops, department stores and service businesses use the standard or higher multiplier.

Business rates for shops by council area

Typical 2026 values for shops in each council area with at least 20 of them.

Sources

Checked against GOV.UK and Business Wales on 13 October 2026. Rules change; if anything differs, GOV.UK and your council are right. Rightly Rated is not affiliated with or endorsed by the Valuation Office, HMRC or any council.

Rightly Rated is a self-serve evidence tool, not a rating surveyor or adviser. Figures come from the Valuation Office’s published 2026 rating list and from what you tell us. We do not act for you with the Valuation Office, and a challenge can lower, keep or raise a rateable value.