Key facts
- Wetherspoon founder Tim Martin warned the UK is heading for a 1970s-style economic decline.
- Martin urged Chancellor John Healey to freeze, not increase, excise duties on alcohol in the next Budget.
- He argued that an "enforced price rise" on beer, wine, and spirits would be the "last thing pubs need".
- The UK has the highest rate of excise duty on alcohol in the G7, according to the UK Spirits Alliance.
- Pubs pay 20% VAT on food sales, unlike supermarkets, which Martin identified as a major issue.
- Martin previously drew criticism for his stance on staff pay during the pandemic and his support for Brexit.
Sir Tim Martin, founder and chair of JD Wetherspoon, has warned that the UK is heading towards a 1970s-style economic decline. He urged Chancellor John Healey to freeze excise duties on alcohol in the upcoming Budget, arguing that an increase would be detrimental to pubs already struggling with high VAT on food sales.
Martin stated that an "enforced price rise" on beer, wine, and spirits would be the "last thing pubs need" in the current economic climate. He highlighted that alcohol tax hits pubs much harder than supermarkets because it represents a higher percentage of their overall sales. He also pointed out that pubs pay 20% VAT on food, unlike supermarkets, a tax structure dating back 45 years when food was a smaller part of pub revenue.
The UK Spirits Alliance supports calls for an excise duty cut, noting that the UK has the highest rate in the G7 and among the highest in Europe, which they argue penalizes consumers and constrains investment.
A Treasury spokesman told The Telegraph that the Chancellor is focused on his priorities and will set out decisions at fiscal events, declining to comment on speculation.