Wetherspoons’ Tim Martin backs Reform pledge to cut hospitality VAT

Wetherspoons’ chairman Tim Martin has backed Reform’s commitment to slash the hospitality industry’s VAT bill to 10%, which he said would allow “most pubs” to charge £2.99 for a pint and “still have higher gross margin than today”.

A missive from Martin, filed on the London Stock Exchange this morning, said Wetherspoons would back “whatever organisation or political party promises a fair and equitable tax regime”, and criticised wider hospitality for its lukewarm reception to Nigel Farage’s proposals.

Martin called on the hospitality industry to back Reform in the face of increased competition from the grocery sector, which he said “has nicked half your trade in recent years – and will gobble up most of the rest in no time flat”.

Farage unveiled Reform’s hospitality support package last week, which alongside cutting hospitality’s VAT from 20% to 10%, included axing the rise in employers’ National Insurance Contributions for hospitality and gradually winding down business rates for pubs altogether. Farage said the package of tax cuts would cost £3b and would be covered by reinstating the two-child benefit cap.

“You would think this offer from Reform would have been greeted by a crescendo of enthusiasm, ecstasy and support from the licensed trade and its supporters,” Martin said.

“However, surprisingly, initial support has been underwhelming, at least from the great and good in the hospitality industry.”

Earlier this month Martin dismissed the government’s business rates support package for pubs as “small fry”, and said that Wetherspoons has faced a £100m hike in costs under Labour’s policies after coming into power in 2024.

Wetherspoon has opened a pub in Alicante Airport this week, marking its first outpost in mainland Europe.