Economic Advice to Chancellor from Wetherspoon
22 March 2022
J D WETHERSPOON PLC
NEWS RELEASE - FOR IMMEDIATE USE
Wetherspoon has criticised the government proposal to increase VAT to 20 per cent in respect of food in pubs, restaurants and cafes in April.
Wetherspoon founder and chairman, Tim Martin, said: "It doesn't make economic sense that food bought in pubs, restaurants and cafes attracts VAT of 20 per cent, when food is VAT-free in supermarkets.
"Pubs, restaurants and cafes form integral parts of high streets, whereas supermarkets are often in edge-of-town or out-of-town locations.
"Favouring supermarkets over pubs is bad for high streets and town centres.
"It is also an accepted principle of taxation that it should be fair and equitable, treating businesses that sell similar products in a similar way.
"Tax discrimination creates economic distortions.
"Supermarkets have clearly used their favourable tax treatment to subsidise the price of beer, wine and spirts over recent decades.
"Pubs, restaurants and cafes play an important role in the social fabric of the nation, as well as generating employment and vast amounts of taxes for the Treasury.
"The hospitality industry understands that governments need tax - but there should be a sensible rebalancing, so that all businesses selling similar products are treated in the same way."
Ends
Enquiries:
Eddie Gershon Company Spokesman 07956 392234
Notes to editors
1. J D Wetherspoon owns and operates pubs throughout the UK. The company aims to provide customers with good-quality food and drink, served by well-trained and friendly staff, at reasonable prices. The pubs are individually designed, and the company aims to maintain them in excellent condition.
2. Visit our website: www.jdwetherspoon.com
3. This announcement has been prepared solely to provide additional information to the shareholders of J D Wetherspoon, to meet the requirements of the FCA's Disclosure and Transparency Rules. It should not be relied on by any other party, for any other purposes. Forward-looking statements have been made by the directors in good faith, using information available up until the date on which they approved this statement. Forward-looking statements should be regarded with caution, because of the inherent uncertainties in economic trends and business risks.
4. The current financial year comprises 53 trading weeks to 31 July 2022.
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