Business Rates FAQs

Business rates, also known as non-domestic rates, are collected on most non-domestic properties such as shops, offices and warehouse space.

 nder the business rates retention arrangements introduced from 1 April 2013, authorities keep a proportion of the business rates paid locally. Together with revenue from council tax, locally generated income from fees and charges and Government grants, it is used to pay for local services such as tackling homelessness, waste collections, environmental health services and maintaining public parks. 

The rateable value of your business premises is set by the Valuation Office Agency (VOA). This is based on their assessment of the open market rental value. The VOA provide a facility to check the rateable value of your property online.

 The amount of business rates payable is calculated by multiplying the rateable value by the correct ‘multiplier’ (an amount set by the government) and then awarding any relevant reliefs & reductions.

The current multipliers are shown on the front of your bill.

 Before the start of each financial year the government sets two multipliers for the whole of England; the standard rating multiplier and the small business multiplier.

At Autumn Budget on 30 October, the Chancellor announced a package of measures to reform business rates and support the high street. The measures are:

• The small business multiplier will be frozen at 49.9p.
• The standard multiplier will be uprated in April in line with September’s CPI figure (1.6%), increasing the multiplier from 54.6p to 55.5p.
• The Retail, Hospitality and Leisure (RHL) relief scheme will be extended for one year for 2025/26, retaining the existing eligibility criteria but reducing the level of relief to 40%, up to a cap of £110,000 per business.
• From April 2025, charitable rate relief will no longer be applicable to private schools.

In Harrow approximately 550 properties are subject to the standard multiplier.

Around 5,000 properties will see no increase due to inflation although they will see an increase due to the retail relief percentage reducing to 40% and Mandatory Charity Relief being removed from Private Schools.

If your bill is subject to the small business rates multiplier, your 2025/26 bills will have no increase due to inflation as the small business multiplier is frozen at 2024/25 levels.

If your bill is subject to the standard multiplier, your 2025/26 bills will be increased by CPI or 1.7% due to inflation.

Your 2025/26 bills will be posted to you around the 12th of March 2025. If you automatically qualify for reliefs, these will wherever possible be added to your bill without you needing to apply, so the bill you received is the actual reduced bill you will need to pay.

If you pay business rates you may be eligible for a business rate relief or exemption. Find out more about support available online at Business rate reliefs and exemptions – London Borough of Harrow