The head of a global hotel chain that has ploughed millions into property in Britain has slammed Labour for making the UK a “risk” for further investment.
The Telegraph reports Greg Hegarty, the co-chief executive of PPHE Hotel Group, has said he is “sorry” that his multi-billion-pound firm is not making the UK the “primary focus” at present because of concerns over the economy.
Mr Hegarty told the paper: “I’m sorry to say that the UK is not the primary focus of growth for our company anymore. I would deploy capital in other European cities at the moment, where it is more favourable to the hospitality sector and easier for a business to grow.
“We’re used to taking risks. However, the risk factor in the UK at the moment for us is a hard one to deal with currently.
“It’s not just National Insurance, it’s the thresholds of business rates, the ongoing flip-flopping of policy … It just creates a total lack of consumer confidence. And this does impact demand, because you’ve got lots of people who are concerned about disposable income.
“I just don’t feel that the Government has actually got a grasp of how to deal with the service sector in general.”
PPHE owns the stunning £300 million art’otel which enjoys fabulous views over Battersea Power Station, and the London-listed company oversees a £2.2 billion property portfolio across Britain and Europe.
The hospitality sector is expected to hard hit by Chancellor Rachel Reeves’ change of the National Insurance thresholds and employer contributions from April. It’s predicted the raid could cost companies in the UK around £25bn.
A Treasury spokesman said: “We delivered a once-in-a-Parliament Budget to get growth back into the UK economy after over a decade of stagnation, and many business leaders are confident that the Chancellor’s growth plans will help drive business investment – both the IMF and OECD forecast that the UK will have the fastest economic growth in the European G7 countries.
“At the same time, more than half of employers will either see a cut or no change in their National Insurance bills, we are permanently cutting business rates for retail, hospitality and leisure from 2026 for the first time, and we have capped corporation tax at 25pc.”
In something of a glimmer of hope for the economy, it has been revealed the UK notched up a record Government borrowing surplus in January, according to official figures, but higher spending figures piled more pressure on the Chancellor ahead of the Spring statement.
The Office for National Statistics (ONS) said the public sector net borrowing surplus was £15.4 billion last month. This is more than the surplus seen a year ago and the largest since monthly records began in 1993.
The Government typically sees a budget surplus – which takes place when tax revenue received is larger than government spending – in January thanks to self-assessment tax payments.
The figures come as Ms Reeves prepares to deliver the Spring statement, a key Government spending review similar to the Budget, in March.
Despite the larger surplus, the Government had still borrowed £12.8 billion more than the Office for Budget Responsibility (OBR) forecast for the 10 months to January.