Reaction to the Budget from JD Wetherspoon PLC's (LSE:JDW) outspoken boss Tim Martin should be a feature of the pub chain’s trading statement tomorrow.
Martin has been a long-time advocate for a fairer tax treatment on British pubs, specifically greater tax equality between pubs and supermarkets.
Prior to the Budget, Martin stated: “The last government failed to implement tax equality between pubs and supermarkets, leading to pub closures and underinvestment - Wetherspoon hopes that the current Chancellor, with a Bank of England pedigree, will understand how many beans make five, and rectify this inequality.”
Whether Chancellor Rachel Reeves’ 1.7% cut to the duty on draft alcoholic beverages, which should shave 1p off every pint poured, cuts the mustard remains to be seen.
Hospitality and retail venues face higher wage bills and National Insurance Contributions (NICs), which threaten to offset this minor duty discount.
Although Reeves partially maintained business rates relief for pubs and bars, the rate of relief was slashed from 75% to 40%.
The implications of these measures on Wetherspoon’s margins will be of high interest to shareholders.
Proactive has approached Martin for a comment on the Budget.