The founder of JD Wetherspoon has issued a stark warning about the potential consequences of alcohol duty increases in the upcoming Autumn Budget, stating that many British pubs may struggle to survive additional tax pressures.
Pubs Face Existential Threat from Tax Hikes
Sir Tim Martin, the prominent chairman and founder of the Wetherspoons pub chain, has voiced serious concerns about Chancellor Rachel Reeves' anticipated decision to raise alcohol duty by 4.5 per cent in her Autumn Budget statement. The announcement is scheduled for delivery from the House of Commons today at approximately 12:30pm.
Sir Tim emphasised that the hospitality sector has already absorbed significant financial blows in recent months, telling Metro: "Pubs and the hospitality industry bore the brunt of the big tax increases in National Insurance Contributions (NICs) only a few months ago."
Financial Impact on Pub-Goers
If the duty increase proceeds as anticipated, consumers could face immediate price increases at the bar. Analysis suggests a bottle of wine might rise by 16p, while a pitcher of gin could see a 47p increase. These additional costs come at a time when many establishments haven't fully recovered from pandemic-related losses.
Sir Tim Martin highlighted the growing disparity between pub and supermarket pricing, noting: "Pubs have lost out in recent years as half of their beef volumes have been won over by supermarkets over the last quarter of a century." He added starkly: "No industry can survive that level of attrition."
Previous Tax Impacts and Future Concerns
The Wetherspoons chain previously suffered a £60 million financial hit following employer tax rises and minimum wage increases implemented in the last Budget. This context makes potential additional alcohol duty increases particularly concerning for the sector.
Sir Tim had previously told the Sun: "If Rachel Reeves even dreams about putting taxes up for locals, she'd better wake up and apologise. I think pubs have been taxed up to the hilt and any more taxes are a bad idea."
The Chancellor's Autumn Budget statement will outline the Government's planned spending and revenue collection strategies for the foreseeable future, with the hospitality industry watching closely to see if their concerns about alcohol duty have been heard.
