Travelodge warns that abuse of levies threatens London's hotel sector

Hotel chain Travelodge has warned that the Community Infrastructure Levy (CIL) is putting the capital's hotel sector under threat (release).

CIL was introduced by the previous Government with the intention of ensuring financial clarity for developers in a bid to ensure developments make a fair contribution to infrastructure whilst providing an alternative solution or replacement to Section 106 payments.

However, instead of helping to drive long term sustainable growth, job creation and investment, the majority of London Boroughs are using this initiative to generate additional revenues.

Travelodge, who currently operates 60 hotels across the capital, has identified 19 London boroughs that have already implemented or are looking to put into practice a CIL charge. Across these 19 boroughs, Travelodge is currently looking to develop 95 hotels which would create 2,600 new jobs. However for these developments to go ahead, the 19 boroughs combined are seeking an additional £27 million from Travelodge.

Paul Harvey, Travelodge managing director said:

The levels of tax being proposed by a majority of London boroughs rule out future hotel development and job creation. Therefore Eric Pickles must recognise the damage that the poorly thought through CIL levels will have on future economic growth, and he needs to stop Councils implementing such harmful rates of tax.