Whitbread says freeze to business rates to have 'significant positive impact'

29th Oct 2026 08:09

(Sharecast News) - Premier Inn owner Whitbread welcomed Chancellor John Healey's Autumn Budget on Thursday, saying the freeze to business rates and a "more reasonable" increase in wages were set to have "a significant positive impact" on its performance.

Healey announced on Wednesday that business rates will be frozen for two years. Whitbread said its preliminary estimate is that its total business rate payments will now only rise between £7.5m and £12.5m in FY28, versus previous expectations for an increase of around £35m. A similar benefit is expected in FY29.

This means that by FY29, the company's business rates payments will be between £45m and £60m lower than previously expected.

Whitbread said it will provide FY28 UK cost inflation guidance, including the estimated impact of the Budget, at its third-quarter trading update in January 2027.

Chief executive Dominic Paul said: "The business rate measures announced in the UK Budget will do much to mitigate the damaging impact of the past two Budgets on the hospitality sector, and we are grateful that the Government has listened to our concerns.

"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. This provides further momentum as we execute our Five-Year Plan which is on track to deliver a material increase in margins, cashflow and returns for shareholders."

At 0808 GMT, the shares were up 1.6% at 2,744p.

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