The boss of Premier Inn owner Whitbread has said UK tax hikes caused the firm to cut back on planned UK hotel investments, which would have created more jobs.
Dominic Paul, chief executive of the hospitality giant, said the industry has been “hammered” by higher taxes and labour costs linked to recent budgets.
He called for Andy Burnham to freeze property taxes ahead of his first autumn Budget later this month.
“We need this Budget to be a turning point for the industry,” Mr Paul told the Press Association.
“What we have seen in recent budgets meant that we have had cut potential investments in hotels, which would have created more jobs.”
Hotels have been impacted by the end of pandemic-era business rates relief and fresh property valuations in tax calculation from April 2026.
The Government has announced rates relief for some parts of the hospitality sector, such as pubs and music venues, but did not extend this to hotels.
He added that potential tourist taxes will be “very unhelpful” for the group, which runs 842 hotels.
Last month, Mr Burnham said he would give regional mayors the power to introduce a visitors’ levy on overnight stays from 2028.
On Tuesday, Whitbread said it is nevertheless seeing “strong trading momentum” in the UK and Germany, despite pressure on consumer finances.
It reported that total revenues rose by 2% to £1.57 billion for the six months to August 27, compared with the same period last year.
Meanwhile, adjusted pre-tax profits slipped by 9% to £287 million for the half-year, as it pushes ahead with a five-year transformation plan.
The company said it has completed plans to close its branded restaurants, hitting the Beefeater and Brewers Fayre brands.
It said it has already completed some hotel extensions and is pushing forward with planning applications to convert more former restaurant units into hotel rooms.