‘The old institution of the pub’ is under threat from high taxes and cheap supermarket drinks, claims Wetherspoon boss
The outspoken Wetherspoon boss says ‘the ancient institution of the pub’ is under threat due to exorbitant taxes.
As he revealed sales were still below pre-pandemic levels despite a rise over Christmas, Tim Martin said the disparity between pub and supermarket taxes was the ‘biggest threat’ to a recovery of Covid.
He argued that supermarkets can sell beer at low prices because they do not pay VAT on food sales, while pubs and restaurants pay 20%.
Struggle: Wetherspoon boss Tim Martin (pictured) said the disparity between pub and supermarket taxes was the ‘biggest threat’ to a Covid recovery
And he lambasted his rivals for not pushing the issue. Martin said: “Unless the industry campaigns for equality it will inevitably shrink from supermarkets, which will not help the high streets, tourism, the economy in general or the old institution of the pub.”
Wetherspoon said sales in the 12 weeks to January 22 were up 17.8% from the same period a year earlier – but down 2% from pre-pandemic levels.
Despite energy, staff and food costs “much higher” than before the pandemic, Martin was “cautiously optimistic” about the chain’s fortunes.
