Tim Martin: hospitality venues will have to raise prices after budget

JD Wetherspoon boss Tim Martin has warned hospitality businesses will have to increase prices following last week’s budget.

He said the pub chain’s taxes and costs would rise by around £60m next year, with its national insurance bill set to jump 67%, due to measures announced by the chancellor.

Speaking as Wetherspoon reported record results, Martin 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.”

UKHospitality has calculated the estimated annual cost of employing a full-time worker will rise by around £2,500 from 2025 due to hikes in national insurance and wages.

Martin said he was confident Wetherspoon would see a “reasonable outcome” for the year but forecasting results was more difficult due to the increased costs.

The company, which operates nearly 800 UK pubs, said like-for-like sales in the 14 weeks to 3 November were 5.9% higher than the same period last year.

Total sales have risen 4.6% in the year to date, dampened slightly by a small number of pub disposals.

Wetherspoon opened its third pub run under franchise at Haven Primrose Valley Holiday Park in Yorkshire in March. The company said trading had been “encouraging” and it was reviewing plans to open pubs at more Haven holiday parks in 2025 and beyond.

Earlier this year Martin said Wetherspoon could open up to 1,000 pubs, but it could be the limit for the brand.