Premier Inn owner brands last two Budgets 'most unfriendly to hospitality ever' as tax bill is set to DOUBLE

Whitbread chief executive Dominic Paul has warned that Labour's last two Budgets have been "the most unfriendly to hospitality that probably the industry has ever seen," leading the Premier Inn owner to abandon hotel investment plans that would have generated jobs. The company faces a business rates bill rising to £200 million by 2028 — double its current level — while profits have already fallen 9% to £287 million for the half-year. Paul is now calling on Prime Minister Andy Burnham to hold property taxes steady in his autumn Budget later this month, cautioning that further increases will damage the sector even more.

Whitbread's rates liability is heading to £200m by 2028, driven by hotels being denied the business rates relief that pubs and music venues receive.

Paul urged that National Insurance changes be reversed, arguing that punitive employment costs make it 'really hard to create as many jobs as we want.'

Burnham's plan to introduce a visitor levy on overnight stays starting in 2028 drew sharp fire from Paul: 'no clear evidence of how or where that money will be spent.'