One of Britain’s leading hoteliers has warned Labour that ‘policy after policy is threatening job creation and investment’ – with the young bearing the brunt of the pain.

As the youth unemployment crisis deepens, a senior executive at Hilton urged ministers to ease the tax burden on business to boost hiring and create more ‘entry-level’ opportunities.

‘Hospitality can be part of the solution and open the door to work for a generation, but only if policies support job creation, not hinder it,’ said Steve Cassidy, managing director of Hilton in the UK and Ireland.

The comments echoed those of Fiona Eastwood, chief executive of Alton Towers owner Merlin Entertainments, who said the UK ‘spends far more supporting young people out of work than it does helping them into it’.

Bosses are speaking out in response to a hard-hitting report by Labour grandee Alan Milburn into youth unemployment that warned Britain faces a ‘lost generation’ who risk spending a lifetime on out-of-work benefits.