The boss of a beloved UK holiday chain says costs are behind 250 proposed job cuts as he admitted they could be forced to hike prices. Butlins CEO Jon Hendry Pickup issued the warning as the 90-year-old resort company celebrates the launch of its first ever location in Skegness, back in 1936.

The Butlins name has been synonymous with low-cost staycation holidays for decades, and at one time had 10 sites across the UK. The advent of low cost air travel hit the business hard, but it still has three resorts in Bognor and Minehead, as well as the Skegness park. Though like businesses across the UK economy, Butlins is also being hurt by rising costs and low consumer confidence as cost-of-living pressures bite. Mr Hendry Pickup previously recently sounded the alarm over Labour's proposed tourist tax, saying they risk putting domestic holidays beyond the reach of working class families facing other cost pressures.

He told The Telegraph on Sunday that the levy being considered, expected to be about £2 per person per night, would have a "disastrous" impact on households and businesses.

The UK Government says visitor levies will allow England's mayors to invest in transport, infrastructure, and the visitor economy and put local leaders on equal footing with top tourist destinations around the world.

Butlins is also contending with the increase employer's national insurance and the minimum wage, which the company says has added £10million in costs, The Mirror reports.

They're also seeing their business rates bill double between now and 2028, adding a further £3million to their costs, as per the outlet.

Mr Hendry Pickup told The Mirror the costs they're facing are "pretty relentless" as he revealed the company had started a consultation to axe 250 jobs.

He said a potential move is "entirely linked" to the minimum wage, employer's NI and business rates hit. But while the fighting in the Middle East and the resulting spike in oil prices has disastrous consequences across the British economy, knock on effects may benefit Butlin's in some areas.

Their summer bookings are 2% ahead of last year, and it could benefit from Britons opting for staycation alteratives the cost of foreign holidays shoots up due to high fuel prices.

It's not uncommon for companies to raise prices to make the most of periods where they see high demand, and Mr Hendry Pickup left open the possibility of Butlin's doing so.

"Not inevitably but there is a chance," he told the newspaper.

It comes as the CEO said Butlins had seen strong trade during the Easter holidays, driven by family bookings.

The UK government said the employers NI rise, and business rates increase were necessary measures to shore up the public finances.

In reference to the NI rise, Rachel Reeves said in her Autumn Budget 2024 speech: "We are asking business to contribute more. I know that there will be impacts of this measure felt beyond businesses."

But The Chancellor added that "in the circumstances that I have inherited, it is the right choice to make".

"Successful businesses depend on successful schools. Healthy businesses depend on a healthy NHS. And a strong economy depends on strong public finances," she said.