Wetherspoons calls for pub food tax cuts ahead of Budget cost increases

The brag of JD Wetherspoon has called connected Prime Minister Sir Keir Starmer to chopped pub nutrient taxes up of a leap successful costs linked to the Budget.

It came arsenic the hospitality elephantine revealed stronger income for the half-year truthful acold contempt selling disconnected much pub venues.

Chairman Tim Martin said the institution is acceptable to look a £60 cardinal leap successful labour-related costs successful April, amid increases successful employers’ nationalist security contributions and the minimum wage.

He said the concern is successful a “reasonable” presumption but that forecasting is “difficult” successful the look of impending taxation and wage increases.

The VAT distortions that beryllium contiguous volition inevitably make much supermarkets and little pubs. Wetherspoon truthful calls upon Sir Keir Starmer to redress this imbalance, thereby striking a stroke for taxation equality and ending favoritism successful favour of dull meal parties

Tim Martin, JD Wetherspoon

As a result, helium renewed calls to equalise the VAT paid connected nutrient by pub and edifice businesses with that of supermarkets.

Most nutrient and portion successful shops has zero VAT whereas restaurants and pubs person a modular complaint of 20%.

“This taxation vantage allows supermarkets to subsidise the terms of brew they sell,” Mr Martin said.

“The VAT distortions that beryllium contiguous volition inevitably make much supermarkets and little pubs.

“Wetherspoon truthful calls upon Sir Keir Starmer to redress this imbalance, thereby striking a stroke for taxation equality and ending favoritism successful favour of dull meal parties.”

It came arsenic the pub institution reported higher income implicit caller months.

It said like-for-like income roseate by 5.1% implicit the 25 weeks to January 19 compared with a twelvemonth earlier.

It said rising nutrient income were a cardinal driver, expanding by 5.6% twelvemonth connected year, portion barroom income were up 4.5%.

This helped to offset a 6.5% slump successful the merchantability of its edifice rooms.

Wetherspoons besides highlighted that income accelerated astir Christmas, with a 6.1% summation implicit the 3 weeks from December 16 to January 5.

However, this was weaker maturation than reported by pub rivals specified arsenic Marston’s and Young’s implicit the festive period.

Wetherspoons presently runs an property of 796 pubs aft selling six sites implicit the past year, portion it has opened 2 caller venues.

Julie Palmer, spouse astatine Begbies Traynor, said: “After an awesome show for astir of 2024, it seems the temper euphony has changed astatine JD Wetherspoon, arsenic it delivered a lacklustre Christmas show that lagged down peers and highlights a greater consciousness of uncertainty arsenic we participate 2025.”