‘Ancient institution of the pub’ being put at risk by high tax
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‘Old pub attitude’ is being jeopardized by high taxes and cheap supermarket drinks, claims Wetherspoon boss
Wetherspoon’s outspoken boss says the “old institution of the pub” is at risk from skyrocketing taxes.
Revealing that despite a surge over Christmas, sales are still below pre-pandemic levels, Tim Martin said the disparity between taxes on pubs and supermarkets was the ‘biggest threat’ to a recovery from Covid.
He argued that supermarkets can sell beer cheaply because they do not pay VAT on food sales, while pubs and restaurants pay 20 per cent.
Struggle: Wetherspoon boss Tim Martin (pictured) said disparity between taxes on pubs and supermarkets was the ‘biggest threat’ to a recovery from Covid
And he berated rivals for not raising the issue. Martin said: ‘Unless the industry campaigns strongly for equality, it will inevitably shrink from supermarkets, which will not help the high street, tourism, the economy in general or the old institution of the pub.’
Wetherspoon said sales in the 12 weeks to January 22 were 17.8 percent higher than the same period a year earlier, but 2 percent lower than before the pandemic.
Despite “much higher” energy, staff and food costs than before the pandemic, Martin was “cautiously optimistic” about the fate of the chain.