Sir Tim Martin, the founder and chairman of JD Wetherspoon, has called on fellow hospitality industry leaders to rally behind Reform UK’s proposals for the pub trade.
In a detailed stock exchange filing released on Monday, Sir Tim argued that Nigel Farage’s party had put forward measures that could fundamentally reshape the sector’s fortunes.
Reform UK unveiled its pub sector package last week, setting out a series of tax relief measures aimed at reviving the struggling industry.
The proposals include reducing beer duty by a tenth and implementing an equivalent cut to VAT across hospitality businesses.
The party has also pledged to reverse recent increases to employers’ national insurance contributions that have hit the sector.
Sir Tim told investors and industry leaders in a lengthy stock exchange filing on Monday that “there’s no question that this initiative would utterly transform the competitiveness of pubs”.
Additionally, Reform has committed to phasing out business rates for all pubs over time.
The party has indicated the measures would cost approximately £3billion, with funding to come from reinstating the two-child benefit cap.
Despite the potential advantages for the trade, Sir Tim expressed disappointment at the reaction from industry figures.
Reform has committed to phasing out business rates for all pubs over time
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PAHe remarked: “You would think that this offer from Reform would have been greeted by a crescendo of enthusiasm, ecstasy and support from the licensed trade and its supporters.”
The Wetherspoon chairman noted that “initial support has been underwhelming, at least from the great and the good in the hospitality industry.”
Sir Tim argued that removing the tax gap between supermarkets and pubs while rebuilding profit margins for struggling businesses would allow venues to recover lost custom, stating the changes “would enable pubs to regain some, or all, of their lost trade.”
Wetherspoons owner Tim Martin has spoken publicly about tax pressures facing the pub sector | GB NEWS / GETTY
Sir Tim’s intervention follows recent Government action to support the sector after warnings that business rates changes announced in November’s autumn budget could force venues to close.
Last month, ministers confirmed that pubs and live music venues across England would receive a 15 per cent reduction on their business rates bills starting in April.
The Government stated this relief would deliver the equivalent of £80million annually for the sector over the coming three years.
The Government stated this relief would deliver the equivalent of £80million annually for the sector
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PA IMAGESThe announcement came in response to widespread concern within the hospitality trade about the impact of the budget’s rates adjustments on already struggling businesses.