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PRIVACY
Retail & Consumer

Wetherspoons' Tim Martin urges Keir Starmer to tackle pub tax disparity amid rising costs

Tim Martin said the decision to hike the national minimum wage, business rates and employers' national insurance will cost his business a lot of money

Wetherspoons chairman, Tim Martin(Image: Facundo Arrizabalaga)

Wetherspoons chairman, Tim Martin, has reiterated his call for the government and Keir Starmer to reduce the tax disparity between supermarkets and pubs in the company's latest trading update.

Following the government's decision to increase the national minimum wage, business rates, and employers' national insurance, Wetherspoon's costs are set to rise by approximately £60m per year, as reported by .

Martin pointed out that these wage increases will have a "significantly bigger impact on pub and restaurant companies than supermarkets," He noted: "Supermarkets pay no VAT in respect of food sales, whereas pubs pay 20 per cent," which enables "supermarkets to subsidise the price of beer they sell."

Martin continued: "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."

The outdoor terrace at the new London and North Western Wetherspoon pub at New Street Station(Image: Martin O'Callaghan / BirminghamLive)

He added: "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."

Martin concluded: "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."

These comments were made alongside Wetherspoons' trading update for the 25 weeks to 19 January.

During the period, the company saw a 5.1% increase in like-for-like sales, with bar sales rising by 4.5% and food sales by 5.6%. However, hotel sales declined by 6.5%.