Wetherspoon boss warns over price increases after Budget tax rises

He 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.”

Wetherspoon, which runs nearly 800 pubs across the country, said its tax and business costs are expected to increase by about £60 million over the next tax year.

This includes an estimated 67 per cent increase in national insurance contributions.

Last week Chancellor Rachel Reeves presented her first Budget, which she said met the Government’s promise not to increase taxes for “working people”.

But she introduced £40 billion a year in extra taxes to put more money into schools, hospitals, transport and houses.

This included plans to increase the rate of employer national insurance from April next year, which would raise £25.7 billion by 2029 to 2030.

On Tuesday, the chief executive of Primark’s parent company said he felt “the weight of tax rises” in the Budget were falling on the UK high street, as he said the company’s national insurance bill would rise by “tens of millions” of pounds.

Meanwhile, Wetherspoon said its sales grew by about 6 per cent in the 14 weeks to November 3, compared with the same period last year.

Mr Martin said this marked “record” sales for the first quarter of the group’s financial year.

The company will open nine pubs this year, including at London Bridge station and Fulham Broadway underground in London and Manchester Airport, and has sold five pubs in 2024.

Three pubs now operate as Wetherspoon franchises.

The first of these, at Hull University student union, opened in January 2022. Sales have approximately doubled compared to the pre-franchise history, the group said.

The second, at Newcastle University student union, opened in September 2023, and sales increased approximately fourfold in the first year.

The statement added: “The most recent franchise opening was at Haven Primrose Valley Holiday park, Filey, North Yorkshire in March 2024, where trading has been encouraging, and we are reviewing plans with Haven to introduce Wetherspoon to more parks in 2025 and beyond.”