Whitbread Sees Business Rates Bill Cut

Whitbread (LSE: WTB) estimates the Budget’s business rates freeze for hospitality will cut its rates bill by £45m to £60m by FY29. The owner of Premier Inn in the UK and Germany, and of a chain of restaurants, said the Government will freeze rates in England for two years, so no hospitality property faces an above-inflation rise.

The company stressed that it is still waiting for full details, so its figures are preliminary. It now expects its total rates payments to rise by only £7.5m to £12.5m in FY28, against a previous consensus increase of about £35m, with a similar benefit in FY29.

Chief Executive Dominic Paul welcomed the changes:

Limiting the increase in business rates over the next two years to inflation, together with a more reasonable increase in the national living wage and national minimum wage, will make a significant difference to our business.

Dominic Paul, Whitbread Chief Executive

The shares opened at 2800p this morning, up 2.3%, and touched a high of 2814p. By 08:09 UK time they had slipped to 2720p, down 17p or 0.6% from yesterday’s close of 2737p. That is also the low of the session so far. The quote may be delayed.

The fade follows a strong session. Whitbread shares rose 5.6% yesterday, from 2592p to 2737p. The cause of this morning’s move has not been established, so the early dip should not be read as a verdict on the rates news.

At 2720p at 08:09 the stock sits about 6% below its 52-week high of roughly 2890p and about 33% above its low of around 2046p. The company’s market value is about £4.4bn.

The next detail is due in January 2027. Whitbread said it will give FY28 UK cost inflation guidance, including the estimated effect of the Budget, at its Q3 FY27 trading update.