Tim Martin, the eccentric boss of pub chain JD Wetherspoon PLC (LON:JDW), has urged Theresa May to take the UK out of the European Union customs union post-Brexit.
The multi-millionaire claimed the move will allow the government to scrap taxes on non-EU food and drink imports, reducing prices in shops and restaurants, which will “immediately improve” living standards in the UK.
EU a 'protection racket'
“The EU masquerades as a free trade organisation, but it is really a protection racket which imposes import taxes on the 93% of the world's population that is not in the EU,” said Martin.
“The UK should copy countries like New Zealand, Australia and Singapore, which have successfully adopted free trade policies, rather than being beholden to the undemocratic EU and its unelected presidents.”
The 63-year-old’s latest anti-EU tirade came in his company’s third quarter trading update, which showed a slowdown in like-for-like sales growth at the value pub chain.
Like-for-like sales rose 3.5% in the three months to April 29, although the year-ago period included the early May bank holiday. Had the bank holiday been included this time around, ‘Spoons reckoned the rate of growth would have been 4.0%.
Even still, that’s a sharp slowdown from the 6% like-for-like sales growth seen in the second quarter. At the time, the company warned that sales comparatives would be “more difficult” in the second half.
Still on track to hit full-year forecasts
“As anticipated, the rate of like for like sales growth slowed slightly in the third quarter,” Martin said.
“We continue to face significant cost increases in the second half in areas which include labour, business rates and the sugar tax. There is also some uncertainty as to the effect on sales of the FIFA World Cup.”
As for the outlook, Martin said he still expects Wetherspoon’s full-year results to be in line with previous forecasts.
‘Spoons shares opened 1% to £11.93.