Travelodge boss says Labour is ‘neglecting’ hospitality as enterprise charges invoice jumps to £50m

The boss of Travelodge has accused the Government of ‘neglecting the broader hospitality sector’ after only offering business rates relief to pubs.

Jo Boydell, chief executive of Travelodge, said it appears that Labour ‘does not understand the economic value’ delivered by the hotel sector.

It comes the day after the Government announced it will offer a 15 per cent discount on business rates bills for pubs and music venues this year.

There has been a huge backlash from retail and hospitality venues ahead of increases to the commercial property levy.

Travelodge said upcoming changes would increase its business rates bill from £38million last year to £50million this year.

And it expects ‘further significant rises’ as transitional relief is phased out over the next three years.

Travelodge boss Jo Boydell said the Government is ‘undermining its own goals for growth and job creation’

Boydell said: ‘By focusing immediate business rates support solely on pubs, the Government is neglecting the broader hospitality sector and undermining its own goals for growth and job creation.’

She said her hotels are ‘anchor employers and long-term investors in communities across the UK, supporting jobs and skills development.’

And she said: ‘Higher rates and a lack of bespoke support, together with wider regulatory cost increases sends the message that the Government does not understand the economic value that our sector delivers.’

She called on the Chancellor to ‘listen and extend pub-style relief to hotels’, while an upcoming review into the system ‘must address the needs of hotels to support long-term investment, skills and growth.’

Travelodge said it also expects its wage bill to increase by approximately £9million, reflecting the rise in the National Living Wage and changes to National Insurance thresholds. 

It also expects additional costs following the Employment Rights Bill and potential new visitor levies, but ‘the impact is not yet quantifiable’. 

The update came as the group posted that revenues increased by 0.7 per cent to £1.04 billion for the year to 31 December.