JD Wetherspoon has warned that its half-year profits will be lower than expected after the pub chain reported a £45m surge in costs. The hike, driven by higher-than-anticipated bills for energy, wages, repairs and business rates, has hit the company's bottom line in the 25 weeks to 18 January.
Shares in the company fell by more than 6% in early trading on Wednesday following the warning. The news adds to mounting pressure on Britain's pub sector, which saw an average of one pub per day close permanently in England and Wales last year, according to analysis by tax specialist Ryan. The total number of pubs fell to 38,623 in 2025, down from 39,989 a year earlier.
Chancellor Rachel Reeves, speaking at the World Economic Forum in Davos, said a support package for pubs would be announced in the next few days, acknowledging the 'particular challenge' they face. However, she confirmed the extra help would not extend to the wider hospitality sector.
Tim Martin, Wetherspoon's chair, said the government had not consulted the company about the pressures facing the industry. He noted that UK energy costs are 'about the highest in the world' and that labour costs are also very high, feeding into all supplier costs.
The trade body UKHospitality has warned the chancellor that unless she reverses planned increases in business rates, more hospitality workers will lose their jobs. Its chief executive, Allen Simpson, said job losses seen before the budget are accelerating.
