Budget hotel chain Travelodge has warned it is facing a barrage of rising costs from wage bill hikes and Budget tax moves as it also flagged worries over consumer demand.

The group said the upcoming above-inflation rise in the minimum wage announced this week, together with the recent rise in national insurance contributions, will see staff costs rise by about another £11 million in 2026.

Added to this, it warned that business rates changes – including the Chancellor’s Budget move to impose a new “surtax” on larger commercial properties worth £500,000 or more – will see its property tax costs “significantly increase”, while the new Employment Rights Bill will heap on further expenses.

It also hit out at the tourist tax announcement this week, which will see mayors given the power to

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