Wetherspoons boss Tim Martin warns of price rises after Budget tax blow to businesses

WETHERSPOONS boss Tim Martin has warned of price rises after last week's Budget.

The pub chairman said it would aim to stay competitive on costs for customers but that all hospitality businesses faced the same pressures.

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The chain's tax bill is expected to rise by two-thirds next year after the Chancellor announced a hike in the national insurance for employers.

Martin said: "Cost inflation, which had surged to high levels in 2022, gradually diminished over the subsequent two years.

"However, it has now significantly increased again following the budget.

"All hospitality businesses, we believe, plan to increase prices, as a result.

"Wetherspoon will, as always, make every attempt to stay as competitive as possible."

Wetherspoons anticipates that tax and business costs will increase by approximately £60 million over the next fiscal year, including an estimated 67% rise in national insurance contributions.

Greg Johnson, analyst at City broker Shore Capital, predicts that the national insurance contributions could "add a further 5p to a pint".

Last week, Rachel Reeves said she was raising the headline employer rate of National Insurance (NI) from 13.8% to 15%.

She also announced a reduction to the threshold at which businesses start paying NI contributions from £9,100 to £5,000.

It's estimated that the move will raise £25billion - the equivalent of around £800 per employee for each firm.

Businesses, particularly within the hospitality sector, warned that the increased financial burden could lead to higher operating costs, which may ultimately be passed on to consumers through price rises.

M&S chief executive Stuart Machin also cautioned this morning that the long-term effects of the recent measures announced in the Budget remain "uncertain for now".

This warning comes despite the retailer reporting a 20% increase in half-year profits, driven by strong sales growth in both its food halls and clothing division.

On Tuesday, the chief executive of Primark's parent company said he felt "the weight of tax rises" in the Budget were falling on the UK high street, as he said the company’s national insurance bill would rise by “tens of millions” of pounds.

Meanwhile, Wetherspoon said its sales grew about 6% in the 14 weeks to November 3, compared with the same period last year.

Mr Martin said this marked "record" sales for the first quarter of the group’s financial year.

Wetherspoon is set to open nine new locations this year, including new establishments at London Bridge Station, Fulham Broadway Underground in London, and Manchester Airport.

Over the past year, the pub giant sold five of its pubs, resulting in a cash inflow of £2.4million.

The company now boasts a trading estate of 797 pubs.