Whitbread Sees Lower Business Rate Costs After UK Freeze
Whitbread expects FY28 business rate payments to rise by £7.5 million to £12.5 million, versus a prior consensus expectation of about £35 million. It projects payments £45 million to £60 million lower by FY29 than prior forecasts.
Following the UK Government's 2026 Budget announcement, Whitbread PLC reported that the decision to freeze business rates for hospitality businesses in England will have a material positive impact on its financial performance. The company estimates that its total business rate payments will now increase by only £7.5 million to £12.5 million in FY28, compared to a previous consensus expectation of approximately £35 million. A similar benefit is anticipated for FY29, leading to a projected reduction in business rate payments of £45 million to £60 million by that year compared to prior forecasts.
Whitbread indicated that these changes provide positive momentum for its Five-Year Plan and noted that it will provide updated FY28 UK cost inflation guidance in due course.