Firm’s profits fall 22% and demand slows, with hospitality sector bracing for employer tax increase in budget

The Premier Inn owner, Whitbread, is ramping up its cost-cutting programme amid slowing demand, as the hospitality sector braces for a widely expected employer tax rise in this month’s budget.

The company, which owns the Beefeater and Brewers Fayre restaurant chains as well as the UK’s biggest hotel brand, said its total revenues had been flat at £1.57bn in the six months to 29 August, while profit before tax fell by 22% year on year to £309m.