Premier Inn owner warns of tax rise threat to hospitality sector

WHITBREAD, the proprietor of Premier Inn, has issued a warning that impending tax increases could pose a significant threat to the UK's hospitality sector.

- AMBER MURRAY

Chancellor Rachel Reeves is grappling with a £40bn shortfall in the country’s finances, which is increasingly likely to be addressed by a tax-increasing Autumn Budget next month.

The focus of these potential tax hikes has been hotly contested, with speculations ranging from a tax on landlords’ earnings to a decrease in tax benefits for Britons contributing to pensions.

“We acknowledge the escalating pressure for tax increases and wider fiscal tightening as part of the forthcoming Budget,” stated Whitbread, which reported a 3% decline in half-year sales to £1.41bn to the markets yesterday. The company also saw its pretax profit drop from £357m to £331m over the same six-month period.