BUSINESSES across Banbury have joined forces to condemn proposals for a budget hotel in the town.

They say building a Premier Inn and separate Beefeater pub on land owned by Kraft General Foods, in Southam road, will sound the death knell for many traders.

Last month, representatives from 18 local pubs, hotels and bed and breakfast businesses met to discuss a plan of action.

In the coming weeks they plan to lobby Cherwell district councillors in a bid to persuade the local authority to turn down the hotel chain’s planning application.

Anna Galvin, owner of Banbury House Hotel, Oxford Road, said: “Banbury simply does not need another budget hotel.

“We already have the Holiday Inn Express to cater for that market, but allowing another will be a death blow to so many local operators already hit hard by the recession.”

Whitbread, which owns Premier Inns, say the development will create up to 70 jobs, but local businesses are sceptical.

Gill Smith, director of the Wroxton House Hotel, said: “You’d be lucky to see much more than a dozen full-time jobs come out of this and there will be many more jobs lost from other pubs and hotels in Banbury.

“The net result will be lots of people out of work.

“In the past couple of years nearly a dozen local pubs and bed and breakfasts have closed their doors in Banbury. Many more will go the same way if Whitbread is allowed to do this.”

Debbie Whitford, owner of Avonlea Guest House, in Southam Road, was angry about the plan. She said: “It would affect me more than most as I am opposite the site. We just don’t need any more big hotels here.”

Businesses have also raised concerns about increased traffic causing congestion in Southam Road, and say the “bland chain” will have a detrimental effect on the character of the town.

Richard Pearson, acquisition manager for Whitbread Hotels and Restaurants, said: “We believe there is an untapped demand for high quality budget accommodation in Banbury and a hotel on this site will boost tourism and contribute to the economic vitality of the town; evidence from similar Premier Inn hotels shows that they can generate significant extra trade for local shops and restaurants. A key local benefit will be the creation of approximately 60 to 70 new jobs.”

The application is likely to be discussed by Cherwell’s planning committee in November or December.

l Premier Inns advertise room rates from £29. Rooms include a television with satellite channels, on-suite facilities, Internet access, and a restaurant and bar. The chain has more than 590 budget hotels across the globe.