Brexit-supporting Wetherspoon boss Tim Martin praises economic ‘pedigree’ of chancellor Rachel Reeves
Tim Martin, chairman of the pub firm, said its total sales are at ‘record levels’ despite having fewer venues than it did a year ago
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The outspoken boss of pub firm JD Wetherspoon has hailed chancellor Rachel Reeves’ economic “pedigree”, as the pub chain reported another hike in sales in recent weeks.
Sir Tim Martin, chairman of the pub firm and an ardent supporter of Brexit, is known for publishing his outspoken political views alongside his company’s trading results.
Mr Martin made overtures to the new chancellor on Wednesday and criticised the previous government’s failure to relieve the tax burden on pubs and restaurants, which he believes has led to closures in the hospitality industry.
The pub tycoon has long argued that the 20 per cent VAT on food sold in pubs but not in supermarkets means that shops can subsidise beer and wine prices.
Mr Martin said: “The average Wetherspoon pub has generated taxes of one sort or another of £7 million in the last 10 years, as well as generating considerable employment and social benefits.
“The last government failed to implement tax equality between pubs and supermarkets, leading to pub closures and underinvestment.
“Wetherspoon hopes that the current chancellor, with a Bank of England pedigree, will understand how many beans make five, and rectify this inequality.”
Last year data from the British Beer and Pub Association revealed that more than 500 pubs closed their doors for good.
Industry group UKHospitality has long called for a reduction of VAT for the sector, which it argues would help businesses overcome rising costs and mean fewer price increases for consumers.
In its latest set of financial results, the pub giant reported like-for-like sales increased by 5.8% in the 10 weeks to July 7, despite unseasonably wet weather.
Like-for-like sales increased by 7.7% over the year to date. Sir Tim said its total sales are at “record levels” despite having fewer venues than it did a year ago.
In the year to date, Wetherspoons has opened two pubs but sold or surrendered the lease on 26 pubs. It added a further 10 trading pubs are either on the market or under offer.
The group, which currently has an estate of 801 pubs, said it has largely disposed of venues which are “smaller and older”, or where it has another site in close proximity.
At its peak, the pub firm had around 950 venues in 2015. Earlier this year, the company said it still hoped to meet long-term ambitions of growing to 1,000 venues despite shrinking the size of its estate.
The group highlighted it has new openings in Waterloo and Fulham Broadway stations in London, and in Marlow in Buckinghamshire planned for the coming months.
The company has disposed of some venues amid efforts to reduce its debt burden.
On Wednesday, Wetherspoons said it expects its net debt to stand at around £670 million at the end of the financial year.
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