Wetherspoon Founder Urges Hospitality to Back Reform UK's Pub Tax Overhaul
Sir Tim Martin, the chairman of JD Wetherspoon, has made a strong appeal to other hospitality industry bosses to throw their support behind Reform UK's policies for the pub sector. This includes plans to slash beer tax and implement other financial measures aimed at revitalising the struggling industry.
Proposed Changes for Tax Parity
In a detailed stock exchange filing on Monday, Sir Tim emphasised that the proposed changes would help the sector move towards what he described as "tax parity with supermarkets." The Nigel Farage-led party announced a series of proposals last week designed to support the ailing pub sector. These proposals include a pledge to cut VAT in the hospitality sector by 10%, reduce beer duty by 10%, reverse the recent rise in employers' national insurance contributions (NICs) for the sector, and gradually remove business rates for all pubs.
Reform UK has stated that it would fund this package with approximately £3 billion, with plans to secure this funding through reinstating the two-child benefit cap. Sir Tim told investors and industry leaders that "there's no question that this initiative would utterly transform the competitiveness of pubs." He elaborated by saying, "By eliminating the tax differential between supermarkets and the hospitality industry, and restoring margins to devastated businesses, these changes would enable pubs to regain some, or all, of their lost trade."
Underwhelming Initial Support
Despite the potential benefits, Sir Tim expressed surprise at the lack of enthusiasm from the hospitality industry. He noted, "You would think that this offer from Reform would have been greeted by a crescendo of enthusiasm, ecstasy and support from the licensed trade and its supporters. However, surprisingly, initial support has been underwhelming, at least from the great and the good in the hospitality industry." This call for support comes just weeks after the Government announced additional business rates support for the sector, following warnings that rate changes announced in November's autumn budget could lead to closures.
Pubs and live music venues in England are set to benefit from a 15% reduction in their business rates bills starting in April, as announced by the Government last month. This measure is expected to provide an £80 million boost to the sector annually over the next three years. However, Sir Tim's advocacy suggests that more comprehensive tax reforms are needed to ensure the long-term viability and competitiveness of pubs compared to supermarkets.
