Red tape fuelling inflation, claims Wetherspoon boss

AN OBSESSION with red tape and a move away from “free enterprise” is threatening the UK’S fight against soaring inflation, the boss of JD Wetherspoon has warned.

The pub chain’s chairman Tim Martin said “a lack of understanding” by politicians over how to stimulate the economy would harm it in the long run.

He added: “In order to bear down on inflation, political parties should encourage free enterprise, rather than a reliance on additional regulations.

“A lack of understanding among some senior politicians about the need to encourage a successful free market economy, presents a real threat to the future prosperity of the country.”

The company’s sales reached their highest ever point over the Easter week. Like-for-like sales across its pubs rose 12.2pc over the three months to April 30.

Wetherspoon now expects sales for the full year to hit a record high.

However, the company said trade was “noticeably quiet” during the Coronation weekend, suggesting that shoppers bought their alcohol in supermarkets rather than pubs.

Mr Martin added: “Sales in the past quarter have continued their positive momentum, although inflation, especially in labour, energy and food costs, remains a more intractable issue.”

The Wetherspoon chairman previously criticised Andrew Bailey, the Bank of England’s Governor, for saying that businesses should be cautious about continuing to raise prices because it could fuel further inflation and lead to higher interest rates.

The company is currently selling 30 pubs, having already disposed of 21 during the year to date – netting it almost £5m.

It added that it had reduced its debt pile by £67m since the beginning of the pandemic to £738m and was planning to invest £185m in new pubs and freehold reversions.

‘A lack of understanding by politicians about helping a successful free market economy poses real threat’