Whitbread, the operator of Premier Inn hotels, has called on the UK government to reconsider recent tax policies that the company says have negatively impacted the hospitality sector. Dominic Paul, Whitbread’s chief executive, described the last two budgets delivered under Chancellor Rachel Reeves as “the most unfriendly” to the industry, citing significant increases in business rates and employment costs.

Paul highlighted that these fiscal measures have forced Whitbread to scale back planned hotel investments, which in turn has limited job creation. He emphasized that punitive rises in hotel business rates and National Insurance contributions have made it “really hard to create as many jobs as we want to,” particularly affecting youth employment opportunities. He urged the government to reverse these tax increases in the upcoming budget, describing it as a necessary turning point for the sector.

The company noted that its business rates bill is expected to double to around £200 million by 2028, a development Paul called unsustainable. Whitbread also criticized government proposals for a visitor levy on tourists staying overnight in the UK. Paul argued that such a levy would represent an additional tax burden on consumers and questioned the transparency regarding how the revenue would be utilized.

Amid these fiscal concerns, Whitbread faces pressure from shareholders. The company is urging investors to reject efforts by its third-largest shareholder, the US hedge fund Corvex, which holds approximately 6.4% of the business, to gain a board seat. Corvex has proposed splitting Whitbread’s hotel operations from its real estate assets, having previously advocated for a sale of the company. Paul dismissed these proposals as lacking credibility and suggested they were distracting from the company’s strategic focus.

Whitbread operates over 850 hotels across the UK and Germany. The company announced in April plans to close its standalone restaurant business, a move that risks 3,800 jobs across the UK and Ireland. Recent financial results showed a 62% drop in profits for the six months ending August 27, down to £109 million, as rising costs offset strong sales performance.

Looking ahead, Whitbread’s leadership hopes the forthcoming budget, expected later this month, will ease the financial pressures on hospitality by freezing property taxes and rolling back other recent increases. Such changes, they argue, would enable the company to invest more in hotel development and job creation, supporting broader economic recovery efforts in the sector.