Pub fans have been told to brace for skyrocketing pint prices by the chief of bargain boozer chain Wetherspoons.
Tim Martin has warned drinkers that they are in danger of splashing out more for their tipples following the new Labour government’s recent Autumn Budget. The budget, which the government warned would contain painful decisions, was Labour’s first in 14 years has been met with a mixed reception. Business is booming for the JD Wetherspoon empire having just recorded record quarterly sales but Mr Martin, no stranger to making his voice heard by the press, has laid his concerns over rising prices at the door of Chancellor Rachel Reeves.
Mr Martin previously praised her “pedigree” as an economist but now feels that the latest budget has created problems for the sector.
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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”.
He added: “All hospitality businesses, we believe, plan to increase prices, as a result. [JD] Wetherspoon will, as always, make every attempt to stay as competitive as possible. The company is confident of a reasonable outcome for the year, although forecasting is more difficult given the extent of the increased costs.”
He claimed the increases in costs were down to the budget, which saw the introduction of rises to both the national minimum wage and employers’ national insurance contributions.
(Image: Getty Images)
Pub and restaurant trade body Hospitality UK has reported the change could see the cost of employing full-time staff increase by around £2,500 a person, The Guardian reports.
The news comes despite the government offering duty relief on draught beer, expected to work out at savings of roughly 1p per pint. Wetherspoons has said it fears its tax and business costs could rise by around £60 due to the budget.
The Daily Star has contacted JD Wetherspoon for further comment.
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