UK's Whitbread sees up to $80 million budget-led savings by fiscal 2029
UK's Whitbread sees up to $80 million budget-led savings by fiscal 2029 Oct 29 (Reuters) - Premier Inn owner Whitbread WTB.L said on Thursday that the UK government's 2026 budget will significantly ease its cost burden and now expects its business rates bill to be up to £60 million ($80 million) lower by fiscal 2029.
Here are some more details:
Whitbread expects its total business rate payments to rise by just £7.5 million to £12.5 million in fiscal 2028, versus previous estimated increase of around £35 million
Relief comes after finance minister John Healey froze the level of business rates paid by hospitality, leisure and retail businesses till 2028
Whitbread, one of the hospitality sector's most vocal critics of last year's budget, was facing a substantial increase in costs due to the sharp rise in business rates
Whitbread expects business rates payments to be between £45 million and £60 million lower than previously expected by fiscal 2029
CEO Dominic Paul said the new fiscal policies will help mitigate the "damaging" impact of the past two budgets on the hospitality sector and provide the company with further momentum to deliver its five-year turnaround plan
The company will provide full cost inflation guidance for fiscal 2028, including the estimated impact of the budget, at its third-quarter trading update in January
($1 = 0.7500 pounds)
(Reporting by Yamini Kalia in Bengaluru)
((Yamini.Kalia@thomsonreuters.com))