Wetherspoon boss attacks Labour for ‘high street dereliction’ as profit falls

Pub chain Wetherspoon has criticized the Labour government for contributing to "high street dereliction" due to tax hikes, as the company's profit decreased by a quarter. Despite a 5% increase in revenue to £2.2bn in the year ending July, pre-tax profit fell by 28% to £59m. Sir Tim Martin, Wetherspoon's chairman, blamed the government for raising business rates, minimum wages, and national insurance contributions (NICs), stating it has pushed pubs to become more expensive than supermarkets and led to job losses and closures.

Wetherspoon's operating margin narrowed from 6.9% to 5.4% last year, with a 5% increase in costs attributed to the falling profit. The group paid £46 more in wages, £31m more in repairs, and £9m more in business rates, while energy costs jumped by 77% to £40m. Energy costs and packaging taxes have also "weighed heavily" on hospitality firms, Martin said.

Like-for-like sales grew by 8.6% in the last nine weeks, driven by "exceptional weather" and the installation of more beer gardens and outdoor seating areas. Martin called for a reduction in VAT on hospitality firms from 20% to 10%, echoing a campaign led by celebrity chef Tom Kerridge, who believes this tax break would prevent insolvencies and job losses on the high street.