WETHERSPOONS boss Sir Tim Martin has warned of price rises in his pubs — as they face £60million extra costs from the Chancellor.
The chain’s founder and chairman said the hike in employers’ national insurance contributions and wages had increased costs by £1,500 per pub.
Sir Tim said the Budget would “exacerbate the already wide price differential for customers” between pubs and buying cheaper drinks in supermarkets.
He warned labour costs were 35 per cent of the pub industry’s sales — compared to 11 per cent for supermarkets.
The Spoons boss regularly calls for pub VAT to be reduced.
And his company revealed its half-year operating profits had slid from £67.7million to £64.8million — rocked by a £31million increase in labour and energy costs.
It paid £410million in tax in the last six months — with VAT being the biggest contributor at £199million.
Sir Tim said he expected a “reasonable outcome” for the rest of the year — with like-for-like sales up 5 per cent.
Wetherspoons boosted its dividend — but its shares still dropped by 7.45 per cent to 552.50.
Hargreaves Lansdown’s Derren Nathan said: “News that operating profits fell shows how much of a challenge rising labour costs are.
“With NI and minimum wage age increases around the corner, the industry’s bracing for another hit.”
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BBC in cartel
BROADCASTERS the BBC, BT, ITV and IMG have been fined £4.2million by the competition watchdog for running a freelancer cartel.
They admitted sharing sensitive information about fees for casual workers, such as camera crews, to fix pay rates. The CMA found 15 instances of the illegal activity.
ASOS 20% leap
SHARES in ASOS leapt by more than a fifth yesterday after it raised its profit outlook as two billionaire investors battled it out for control.
Dane Anders Povlsen raised his stake to 28 per cent, prompting Mike Ashley to lift his share in the fashion retailer to 25 per cent. A 30 per cent stake will trigger a takeover.
Good week
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CHRIS Gillespie, boss of pawnbroker H&T — which is having a golden moment as more customers cash in their jewellery.
Bad week
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SARAH Merrick, chief of green firm Ripple Energy, after it ran out of cash and filed for administration.
