Business bosses are “extremely concerned” about the impact on the town’s economy following news a busy town centre hotel will be taken over by the government.
Novotel's management recently issued a letter to its staff explaining it had been contracted for use by the Home Office to house asylum seekers.
Ipswich Central CEO, Sophie Alexander-Parker, is the latest town figure to raise concerns, and said the organisation is “extremely concerned" over the decision.
Ms Alexander-Parker said that the decision can “create a negative impact on the hospitality and leisure sectors who rely upon visitors being able to stay in such locations".
She added: "Also, the fact that staff are going to be losing their jobs due to the Home Office taking over a premises for a need of their own is totally unacceptable.
“There has been no thought as to how this impacts the town centre and the wider implications on an already stretched service provision. Despite numerous interventions by the local authority and our towns MP, the Home Office have completely ignored these calls and gone ahead regardless.”
Ipswich business owners also shared their opinions, saying that losing the visitors who stayed in the hotel will be "damaging for the local economy".
Reorganisation of the hotel due to the contract has meant a number of staff members face redundancy.
The statement issued by Novotel reads: “The board of Directors have made the decision to contract the hotel for the purpose of government use only.
“This will affect jobs considerably so your role could be at risk of redundancy.”
The agreement has been criticised by Ipswich’s MP and the leader of Ipswich Borough Council, David Ellesmere, who called it “disgraceful” staff were being laid off.
He added: “The Novotel is the largest hotel in the town centre and we are concerned about the negative impact its loss from the hotel market will have on the local hospitality and leisure sector who benefit from the spend from hotel residents.
“It is disgraceful that loyal members of Novotel staff are now being laid off as a result of the Home Office taking over the hotel.
“As a council we remain committed to providing support to those in need and we support the Government’s stated aim of moving to ‘full dispersal’ for asylum seekers which would end the use of hotels and see all areas of the country provide support rather than concentrating provision in urban areas like Ipswich. In our view, the use of the Novotel runs completely counter to that policy.”
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