Wetherspoons calls for pub food tax cuts ahead of Budget cost increases
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The boss of JD Wetherspoon has called on Prime Minister Sir Keir Starmer to cut pub food taxes ahead of a jump in costs linked to the Budget. It came as the hospitality giant revealed stronger sales for the half-year so far despite selling off more pub venues.
Chairman Tim Martin said the company is set to face a £60 million jump in labour-related costs in April, amid increases in employers’ national insurance contributions and the minimum wage. He said the business is in a “reasonable” position but that forecasting is “difficult” in the face of impending tax and wage increases.
The VAT distortions that exist today will inevitably create more supermarkets and less pubs. 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 dinner parties.
As a result, he renewed calls to equalise the VAT paid on food by pub and restaurant businesses with that of supermarkets. Most food and drink in shops has zero VAT whereas restaurants and pubs have a standard rate of 20%. “This tax advantage allows supermarkets to subsidise the price of beer they sell,” Mr Martin said.
“The VAT distortions that exist today will inevitably create more supermarkets and less pubs. “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 dinner parties.”.
