Holidaymakers in Britain are facing even higher prices as hoteliers warn they may have to offset rising business rates bills.
More than 500 hotels could see their costs rise under reforms proposed by Rachel Reeves, warning the Chancellor that they will have no choice but to put up room prices as a result.
Bosses also said rising tax bills would endanger jobs and force them to look abroad when deciding where to open new hotels.
The analysis from trade body UKHospitality comes after the boss of Britain’s biggest hotel chain urged Reeves to change tack. Dominic Paul of Whitbread, which owns Premier Inn, warned her not to heap ‘punitive’ tax rises on firms, saying: ‘If rates go up materially in our large hotels, of course it will have an impact on our ability to invest.’
Knight night: Sir Lenny Henry in an advert for hotel chain Premier Inn
The firm said it may instead open more hotels in Germany.
UK Hospitality said hotels could see their rate bills increase by thousands of pounds, noting that as many as 535 hotels are set to fall into the higher category proposed by Labour. Instead, the trade body is calling for hospitality businesses to be exempt.
Firms also say the timing of the Budget gives them little time to adapt to a change in April.
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