The Office for Budget Responsibility (OBR) said the Budget will introduce a series of business rates reforms affecting different sectors and property types.
According to the leaked forecast, the measures include adjustments to the annual uprating multipliers, which will lower bills for retail, hospitality and leisure properties while raising them for higher-value premises.
A transitional relief scheme will cap bill increases following the 2026 revaluation, and the Government will extend arrangements allowing certain local authorities to retain a greater share of business rates revenue.
Taken together, the OBR estimates the package will reduce receipts by £1.2bn a year on average between 2026-27 and 2028-29, becoming broadly revenue-neutral towards the end of the forecast period as the transitional relief and enhanced local retention arrangements expire.
