Wetherspoon boss warns punters of upcoming price hikes after Reeves announces tax rises

Wetherspoon boss has warned of price increases, saying the pub’s tax bill will rise by two thirds next year due to changes announced in the Autumn Budget.

In the Autumn Budget last week Chancellor Rachel Reeves announced plans to raise employer national insurance from April next year.

Wetherspoon, which runs nearly 800 pubs across the country, said its tax and business costs are expected to increase by about £60 million over the next tax year.

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Tim Martin, Wetherspoon’s chairman, said he believes “all hospitality businesses” are planning to pass on higher costs through price hikes.

He said: “Cost inflation, which had jumped to elevated levels in 2022, slowly abated in the following two years, but has now jumped substantially 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.”

This includes an estimated 67% increase in national insurance contributions.

In Rachel Reeves' first Budget last week, she said she was meeting the Government’s promise not to increase taxes for “working people”.

She introduced £40 billion a year in extra taxes to put more money into schools, hospitals, transport and houses. Increasing the rate of employer national insurance will supposedly raise £25.7 billion by 2029 to 2030.

Other companies have expressed their distress about the upcoming rise in employer national insurance.

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 3 November, compared with the same period last year.

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

The company will open nine pubs this year, including at London Bridge station and Fulham Broadway underground in London and Manchester Airport, and has sold five pubs in 2024.