3 hours Ago By Jonathan Prynn
Wetherspoon boss Tim Martin today blamed dinner party loving politicians for the decline in the pub trade as he revealed the chain will have to shoulder £60 million in extra costs from April. In a trading update for investors the outspoken chairman of the pub chain said Prime Ministers and other politicians who preferred entertaining at home to visiting their local did not understand the impact of the different tax treatment of alcohol bought in shops, which does not attract VAT, and drinks ordered in pubs , which does. He said: “It is a clear principle of taxation that taxes should be fair and equitable, as between different types of companies.
“The VAT distortions that exist today will inevitably create more supermarkets and less pubs. “Given the public’s love of pubs, the only possible explanation for this tax discrepancy is that prime ministers and other legislators, in the 45 years since Wetherspoon started trading, have been dinner party goers, rather than pub goers. “Food at dinner parties is VAT-free, subsidised by the legendary “man on the Clapham omnibus”, who has fish and chips at his local pub.
“Wetherspoon therefore calls upon Sir Keir Starmer to redress this imbalance, thereby striking a blow for tax equality and ending discrimination in favour of dull (yawn, yawn) dinner parties. “ In the 25 weeks to 19 January 2025, like-for-like sales were 5.1% higher.
Bar sales increased by 4.5%, food by 5.6% and slot machines by 11.
7%. Hotel room sales fell by 6.5%.
Like for like sales for the main Christmas period, the three weeks to 5th January 2025, were up 6.1%. In the year-to-date, the company has opened two pubs - in Marlow, Buckinghamshire and at London’s Waterloo station.
The company plans to open a total of nine pubs in the year, including sites at London Bridge station, Fulham Broadway underground station, Manchester Airport, Beaconsfield, Wetherby and Bath. Charlie Huggins, manager of the ‘Quality Shares Portfolio’ at Wealth Club, said: “Wetherspoons sales growth slowed slightly in the second quarter but still remained solid with robust trading over the key Christmas period. Its commitment to low prices and doing the basics well are helping to keep punters loyal.
“However, the extent of cost increases for the sector is crippling. The £60 million annual increase in labour related costs Wetherspoons is facing is almost equivalent to the entire profit it made last year (PBT of £73.9 million).
“Price increases are inevitable, but for Wetherspoons this is a delicate balance. Raise prices too much and it risks ostracizing its loyal customer base. Not enough, and margins could come under serious pressure.
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