Thursday, September 19, 2024

Labour risks taking Britain back to the 1970s, warns Sir Rocco Forte

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He cited the Government’s plans to increase a windfall tax on North Sea oil and gas producers as an example of anti-growth policies. The change will take the effective tax rate on operators to 78pc and companies claim the move will cost the economy £12bn in tax receipts and put at least 35,000 jobs at risk. “It’s crazy,” Sir Rocco said.

The hotelier said he was also concerned about Deputy Prime Minister Angela Rayner’s plans to overhaul workers’ rights, including making it easier for workers to claim four-day working weeks. 

“If employers wanted to do it, they could do it now,” he said, adding that he looked at it for his own business but concluded it would be too expensive to implement. 

Son of the late hotelier Charles Forte, Sir Rocco created Rocco Forte Hotels with his sister Olga Polizzi. Its first two hotels opened in 1998 and the group now has 15 luxury venues, with five more under development. Revenues in the year ending April totalled £312m and the company made a profit of £15.8m.

The Saudi Arabia ‘revolution’

Last December, Sir Rocco oversaw the sale of a 49pc stake in the group to Saudi Arabia’s Public Investment Fund (PIF), valuing the business at around £1.4bn.

PIF is Saudi Arabia’s sovereign wealth fund, led by Crown Prince Mohammed bin Salman. It counts Newcastle United FC, Heathrow and Aston Martin among its investments and is constructing a futuristic city in the desert called Neom as part of efforts to diversify the Saudi economy away from oil.

However, the fund has proved controversial, given Saudi Arabia’s human rights record. Amnesty International has raised concerns about freedom of expression in the country, alleged unfair trials, death sentences, claimed human rights abuses against migrants and discrimination against women. 

Sir Rocco insisted that Saudi Arabia under the Crown Prince was a modernising force in the region.

“They are a benign influence on the Middle East,” he said. “I see no reason not to deal with them at all.

“The current regime has created a sort of revolution in Saudi Arabia. It’s amazing what is going on there and the developments taking place, and the overall liberalisation of the economy to a great degree.”

With PIF’s support, Rocco Forte Hotels plans to double the amount it is spending on revamping its hotels to €40m (£34m). Refurbishment projects include London’s Brown’s Hotel, the Hotel de Russie in Rome, Verdura Resort in Sicily and The Charles in Munich. It is also developing five new hotels in Italy.

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