Additional multipliers for England Section 1: Determination of additional multipliers
Section 1 of the Act amends Part A1 of Schedule 7 to the 1988 Act to enable new non-domestic rating multipliers Prior to the changes made by this Act coming into effect from April 2026, there are two multipliers (i.e. tax rates) for non-domestic rating in England: the non-domestic rating multiplier and the small business non-domestic rating multiplier. Rules for the calculation of these multipliers are in Part A1 of Schedule 7 to the 1988 Act. Section 1(1) of the Act provides for Part A1 to be amended by Section 1 to enable the introduction of additional multipliers.
	Section 1(2) amends Part A1 of Schedule 7 to the 1988 Act to enable provision to be made in Regulations for the calculation of additional multipliers under powers in a new Chapter 3A. Provisions concerning the application of those multipliers to particular hereditaments appear later in the Act at Section 3.
	Section 1(3) introduces the new Chapter 3A into Part A1 of Schedule 7 which contains powers for the Treasury to set higher and lower multipliers. Under the three charging Schedules to the 1988 Act, the chargeable amount is found by multiplying the rateable value for the hereditament (or in relation to the central list the ratepayer) by the relevant multiplier. 1 Multipliers are therefore expressed as a number – for example the small business non-domestic rating multiplier for 2024/25 is 0.499. 2
	The new paragraph A6A(1)(a) of Schedule 7 contains a power for the Treasury, by regulations, to introduce multipliers which are higher than the non-domestic rating multiplier for that year but not more than 0.1 higher. There is no limit on the number of higher multipliers.
	The new paragraph A6A(1)(b) contains a power for the Treasury to make provision for additional multipliers which are lower than the non-domestic rating multiplier for that year but not more than 0.2 lower than the small business non-domestic rating multiplier for that year. The new paragraph A6A(2)(a) provides that there cannot be more than two lower multipliers. However, the new paragraph A6A(2)(b) provides that these multipliers may be adjusted to vary in level for properties which are occupied (and therefore whose bills are determined under Schedule 4ZA of the 1988 Act), unoccupied (Schedule 4ZB of the 1988 Act) or on the central rating list (Schedule 5A).
	Section 1(4) amends Chapter 4 of Schedule 7 to the 1988 Act to ensure that existing provisions concerning how multipliers should be calculated and the giving of notice of those multipliers apply to the additional multipliers.
	Section 1(5) amends chapter 6 of Schedule 7 to the 1988 Act to set the parliamentary process for approving the regulations made under the powers introduced by Section 1. Regulations making provision for the higher multipliers cannot be made unless a draft has been approved by the House of Commons (i.e. affirmative resolution Commons only procedure). Regulations making provision for the lower multipliers are subject to annulment in pursuance of a resolution of the House of Commons (i.e. negative resolution Commons only procedure).