A well-known Coventry hotelier has poured scorn on the government's 'special treatment' of hotels housing asylum seekers. Rick Cressman, who runs Nailcote Hall on the outskirts of Coventry, has criticised what he brands an "unfair" system.
Mr Cressman, an outspoken critic of the tax system who once burned a £25,000 business rates bill, claimed Home Office bosses were "taking over" hotels with deals that were too good for owners to refuse. And he blasted the fact they were subject to reduced rates of tax, BirminghamLive reports.
Mr Cressman says asylum hotels have been "gifted" 100 per cent occupancy at good rates while also paying less VAT. He said it came as he was forced to weather an energy "****storm".
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The former Coventry University student says his latest energy bill set him back £110,000 - up from £36,000 for the same period last year. "What that does is wipe your profit out," he said.
"You can't just run a business and keep re-investing if your profit is wiped out. We are paying a relatively small amount (of VAT) but we are still paying. I think it is a very unfair state of play. These businesses are getting 100 per cent occupancy."
According to HMRC, accommodation providers pay less VAT when a guest stays for over 28 consecutive days. But the Home Office said these rules apply to all hotels, inns and boarding houses and denied any "special VAT status" for those housing refugees.
Mr Cressman also claimed hotels housing asylum seekers had benefited from lower costs due to needing fewer staff. He said the washing of towels, pillowcases and bedsheets would need to be done less regularly.
"It's a difficult world we're living with," he said. "Business itself has been really quite solid. But we don't want to damage the solidity of our turnover by trying to pass on price rises to a level that damages demand.
"All of our hospitality and hotel businesses should be at a rate of 10 per cent. The fact they've got this existing special deal for long-stay people seems very unfair.
"On the one hand, you're running hotels that are - let's call them normal hotels - and another group of people who are running specialist accommodation venues. One lot is expected to generate 20 per cent VAT for the Government and the others are generating four per cent.
"That seems really quite counter-productive in my opinion. I feel that Jeremy Hunt and Rishi Sunak are quite happy to see the hospitality industry demolished. If we all end up having a beer at home and watching Sky TV that's our social life in the future. It's not an attractive proposition in my book."
A Government spokesperson said: "Hotels that have an agreement with the Home Office to provide accommodation to asylum seekers do not have any special VAT status and normal rules apply. The number of people arriving in the UK who require accommodation has reached record levels and has put our asylum system under incredible strain.
"While we accept that hotels do not provide a long-term solution they do offer safe, secure and clean accommodation. We are working hard with local authorities to find appropriate longer-term accommodation."
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