Tim Martin from Wetherspoon: Hospitality companies will increase prices after Budget

JD Wetherspoon founder Sir Tim Martin has warned of impending price rises in the UK hospitality sector in response to last week’s Budget.

Martin, who founded the pub giant in 1979, said cost inflation had fallen gradually over the past two years but had “increased significantly” since Chancellor Rachel Reeves’ first Budget speech.

Reeves revealed that from April 2025, employers will pay a national insurance rate of 15 per cent on employee salaries above £5,000, up from the current 13.8 per cent on salaries above £9,100.

In addition, the national living wage will increase by 6.7 percent to £12.21 per hour, while the minimum wage for 18 to 20-year-olds will increase by 16.3 percent to £10 per hour.

And hospitality businesses will get a 40 per cent discount on their business rates bills, instead of the current 75 per cent discount, up to a maximum of £110,000.

Many businesses and trade bodies, including UKHospitality and the Campaign for Pubs, criticized the decisions, arguing they risked job losses and closures.

Martin told investors on Wednesday: ‘Cost inflation, which had risen to high levels in 2022, slowly declined over the following two years but has now risen substantially again as a result of the Budget.

‘We think that all catering companies are planning to increase prices as a result. Wetherspoon will, as always, make every effort to remain as competitive as possible.’

Despite the higher expected costs, the outspoken boss said Wetherspoon is still confident of a “reasonable outcome” this financial year.

He made the comments as Wetherspoon stated that like-for-like revenues had risen 5.9 percent in the fortnight ended November 3.

Both bar and food sales rose 5.7 percent, while slot and fruit machine sales rose 13.5 percent, although hotel room sales were 2 percent lower.

Due to the sale of some cafes, the company’s total turnover has grown by 4.6 percent since January.

It plans to open nine branches this year, including at Manchester Airport, London Bridge station and Fulham Broadway tube station.

Alex Doran, analyst at Third Bridge, said: ‘There are opportunities for Wetherspoon as independent pubs and leased venues close, allowing expansion in areas where these venues have closed.

‘Additionally, as cities welcome workers back to offices and tourism recovers, Wetherspoon could capitalize on these trends.

‘However, the long-term focus of younger generations on health and wellbeing, with many choosing not to drink, is a concern.’

JD Wetherspoon shares were 1.8 per cent higher at 608.5p on Wednesday morning, although they are still down by around a quarter this year.