A leading Wrexham-based hotelier says Labour is “setting the hospitality industry up to fail” and warned things are harder than they’ve been for many years.
Hospitality expert Steven Hesketh, the MD of The Hospitality Hero and of The Savvy Hotel Group, fears last year’s Budget is set to have a devastating impact on businesses across the UK.
Outlining his concerns, Hotel Wrexham owner Steven said: “I’m furious about the recent Budget because businesses like mine are being completely screwed by this government. The anger is so intense it’s hard to even put into words.”
Steven, who runs hotels across the north west of England and in Wales, continued: “I worked out recently that with regards to business rate changes that the rateable value of our hotel in Wrexham currently sits at £87,000. From April 2026 it will jump to £171,000. That’s basically double.
“So, let’s think this through, £80 per night, then you have to take away 20% for VAT, then there is 20% commission to Booking.com, another 10% has to go on Business Rates – so we are at less than £40 before we cover the further increased utilities bill, which are averaging circa 10% .
“Then, of course you need to factor wages for people like the cleaner of the bedroom, the maintenance man, the night porter, who is there for your health and safety, the receptionist to check you in, the management to keep the hotel top notch – that’s before we have anyone on standby to possibly offer you breakfast like a chef and a waitress.
“Of course, there are other items such as linen, toilet roll, toiletries, tea and coffee making facilities, any form of contribution to wear and tear/replacement of the goods in the room over time, perhaps a uniform etc.
“If there was a £1 or so left at the end of all of this, the Government will come and take a further 25p for Corporation Tax at the very end for good measure.”
Steven said the government has failed to appreciate how reliant the industry is on people: “These new rateable values kick in from 1st April 2026, based on a rental snapshot from April 2024. That alone is laughable. It pretends the world stands still and that a made‑up rent reflects your ability to pay.
“It ignores reality, cashflow, payroll, debt, and the fact that hospitality is one of the most people‑heavy, service‑heavy, margin‑tight industries out there.
“It feels like a number has been pulled out of nowhere just to take more money, and us entrepreneurs are paying for the privilege. And then someone, somewhere in the government, will tell you it’s ‘fair’, or that ‘everybody has to play their part’.
“Since Labour walked in, we have only had to pay more and more. You’re sitting there with a calculator trying to work out which part of your actual real life you’re supposed to sacrifice to keep this thing going.
“Every single part of running a hospitality business is now more expensive, more fragile and more stressful than it was a few years ago. But sure, let’s double the base you tax us on and call it ‘fair’ and ‘progressive’.
“Labour haven’t walked into this and fixed it; they’ve walked into it and pressed the accelerator.
“They talk about stability and responsibility while quietly making decisions that just squeeze anything that isn’t a giant corporation with endless pockets.
Steven added: “The game is being rigged in real time, and people like us are the ones paying for it. We are being given a bad hand right now and everyone is undergoing a very hard time.
“And if enough of us go under, it won’t just be a few failed businesses, it’ll be empty streets, dead towns and a government wondering where all that business rate money went when there’s nobody left to bleed.”
