Labour’s holiday tax torn apart by Butlin’s boss – ‘disastrous’ | UK | News

Butlins’ chief executive has warned that Labour’s proposed tourism tax risks keeping domestic holidays out of reach for working-class families due to pressure on the hotel industry. Jon Hendry Pickup said the tax, expected to be around £2 per person per night, would have a “catastrophic” impact on households and businesses.

He argued that the policy being consulted could significantly increase the cost of budget cuts across Britain. He said a four-night stay for a family of four in one of Butlin’s cheapest rooms could effectively double the price when surcharges were added.

Holidays that previously cost £49 are now unaffordable for many families.

“This suddenly became out of reach for a bunch of people in the UK,” he told The Telegraph.

He added: “This is a holiday tax.”

The comments put him at odds with Rachel Reeves, who told the Spring Statement that she got into politics to make sure being able to pay for a holiday was never too much to ask for.

Mr Hendry Pickup said the opposite would happen if the tax was introduced. He argued that the measure, which aims in part to regulate short-term rental platforms such as Airbnb, does not reflect how the visitor economy works more broadly.

“It’s designed to target short stays like Airbnb and doesn’t take into account the diversity of business models,” he said. “That’s the frustrating part.”

The warning comes as hospitality companies face rising business rates due to increases in property values. While the government is supporting pubs and music venues, holiday parks such as Butlin’s have so far been excluded, despite providing accommodation, entertainment and catering services.

Mr Hendry Pickup said Butlin’s played an important role in seaside economies such as Skegness, Minehead and Bognor Regis.

Since Mr Hendry Pickup took over in 2022, he has led a transformation of the company, returning it to profit after a period of losses. It also continued its efforts to modernize the brand by introducing new attractions and expanding adult activities.

Ownership has changed in recent years. Following Blackstone’s acquisition of parent company Bourne Leisure in 2021, Butlin’s was sold back to the founding Harris family the following year.

Mr Hendry Pickup also warned that changes to employers’ National Insurance and increases in the minimum wage were making it harder to recruit young workers. Butlin’s has traditionally provided first jobs to young people, but rising costs are pushing the company to hire older, more experienced staff.

He said he met frequently with ministers but was frustrated by the lack of understanding of business pressures.

“I think I’ve failed to make the point,” he said, adding that higher taxes risked making holidays less costly and further straining the domestic tourism industry.