Budget favours the Notting Hill dinner party set – Wetherspoon chief
THE boss of JD Wetherspoon yesterday accused the Chancellor of favouring wealthy people who host Notting Hill dinner parties over those who have a modest meal in a pub.
Tim Martin said Philip Hammond’s Budget had increased the inequality between supermarkets and pubs by forcing the latter to pay more in taxes and business rates.
He said supermarkets paid less than 2p in business rates per pint of beer sold, whereas pubs paid about 18p a pint and a further 20 per cent VAT on food.
This allows Tesco and its rivals to sell alcohol at a much lower price, encouraging drinkers to stay at home to socialise with friends rather than go out.
From next month, pubs will be forced to pay an extra 2p a pint due to a business rates re-evaluation.
On Wednesday Mr Hammond sought to help them cope with the hike by offering £1,000 tax relief for those with a rateable value of less than £100,000.
He said this would help 90 per cent of the pubs in England – but Mr Martin said it would not benefit big companies such as JD Wetherspoon, which typically has larger premises.
Mr Martin, who backed Brexit in the EU referendum campaign, said: ‘We understand the need for the Government to raise taxes, but there needs to be tax equality between pubs and supermarkets.
‘I want a reduction in business rates for pubs and an increase for supermarkets, and I want VAT for food in pubs reduced too. It doesn’t make sense if you have a dinner party in Notting Hill with food from Waitrose there is less VAT charged on the food than if you go to a pub in Newcastle. Government policy is favouring places like Belgravia over less affluent parts of the country where pubs are closing down.
‘In effect, this was a budget for dinner parties, no doubt the preference of the Chancellor and his predecessor.’
Mr Martin said supermarkets paid almost no VAT on food, allowing them to subsidise the price of alcoholic drinks.
He added that a business rates bill of £7million, a £2million apprenticeship levy and a £4million knock from the sugar tax would contribute to £29million of extra charges that JD Wetherspoon will face over the next few years.
Mr Martin has gained a reputation for commenting on politics and Government policy, and was an outspoken critic of David Cameron. He donated just over £200,000 to the official Vote Leave campaign had half a million beer mats printed with messages in favour of the UK cutting its ties with Brussels.
Mr Martin made the latest comments as JD Wetherspoon released half-year results which saw profits jump 43 per cent to £51.4million.
JD Wetherspoon employs 35,000 people and is seen by many as the saving grace of the struggling pub industry. It has 906 locations nationwide.
Mr Martin has built up a personal fortune estimated at £254million.