JD Wetherspoon calls for level playing field over VAT charges

By MARTIN FLANAGAN
Published on 14/09/2012 09:44

PUBS group JD Wetherspoon yesterday criticised the continuing “disparity” on VAT which pubs pay but supermarkets do not.

Tim Martin, chairman of the company, whose 800-plus estate includes about 40 Scottish outlets, said: “The biggest dangers to the pubs are the VAT disparity between supermarkets and pubs, combined with the continuing imposition of stealth taxes, such as the late-night levy and the increase in fruit machine charges.”

Wetherspoon estimated that the late-night levy which local authorities in England and Wales will be able to charge from next month on pubs opening an extra hour to 1am would cost it £4,500 a pub or £2 million a year. It estimated the new gaming machine tax that comes in next February would cost it a similar amount.

The criticism came as the group unveiled pre-tax profits down 4 per cent to £58.9m (£61.4m) on revenues up 11.7 per cent to £1.2 billion in the 53 weeks to 29 July.

John Hutson, the firm’s chief executive, acknowledged it was “ironic” that Wetherspoon was among those leading the campaign against extra government taxes on the industry when it was one of the most successful operators, as many independent pubs were closing down.

But he said: “For sure, the pubs industry has not done well. We have seen many thousands of pub closures in recent years. In the long run we must have parity [on VAT with supermarkets]. We are selling the same thing. With excise duty combined we are the most expensive place to buy a beer in Europe.”

Wetherspoon, which opened 40 pubs in the year, including the Guildhall & Linen Exchange in Dunfermline, has pegged the total dividend at 12p, courtesy of a proposed 8p final.