Wetherspoon’s Tim Martin: Hotel companies to raise prices after budget

JD Wetherspoon founder Sir Tim Martin has warned of looming price rises in the British hospitality sector in response to last week’s Budget.

Sir Tim Martin, who founded the pub giant in 1979, said cost inflation had gradually fallen over the past two years but had “increased substantially” since Chancellor Rachel Reeves’ first Budget speech.

Reeves revealed that employers will pay a 15 per cent National Insurance rate on workers’ wages above £5,000 from April 2025, compared to the current 13.8 per cent on wages above £5,000. £9,100.

Additionally, the national living wage will increase by 6.7 per cent to £12.21 per hour, while the minimum wage for 18-20 year olds will increase by 16.3 per cent to £10 per hour.

And hospitality businesses will be allowed a 40 per cent discount on their business rates bills, instead of the current 75 per cent refund, up to a limit of £110,000.

Many businesses and trade bodies, including UKHospitality and Campaign for Pubs, criticized the decisions, arguing they risked job cuts and closures.

Martin told investors on Wednesday: ‘Cost inflation, which had jumped to high levels in 2022, slowly declined over the following two years but has now risen substantially again following the Budget.

“We believe all hotel companies plan to increase prices as a result. “Wetherspoon, as always, will do everything possible to remain as competitive as possible.”

Despite the expected higher costs, the outspoken boss said Wetherspoon was still confident of achieving a “reasonable result” this financial year.

He made the remarks as Wetherspoon’s said its like-for-like revenue rose 5.9 per cent in the 14 weeks ending 3 November.

Both bar and food sales rose 5.7 per cent, while slot and fruit machine sales soared 13.5 per cent, although hotel room sales fell 2 per cent.

Thanks to the sale of some pubs, the company’s total turnover has increased by 4.6 percent since January.

It plans to open nine stores this year, including at Manchester Airport, London Bridge station and Fulham Broadway tube station.

Third Bridge analyst Alex Doran said: “There are opportunities for Wetherspoon as independent pubs and rented sites close, which could allow expansion into areas where these venues have closed.”

‘Furthermore, as cities welcome employees back to offices and tourism recovers, Wetherspoon could capitalize on these trends.

“However, it is worrying that younger generations have a long-term focus on health and wellbeing, with many choosing not to drink.”

JD Wetherspoon Stock They rose 1.8 per cent to 608.5p on Wednesday morning, although they are still down around a quarter this year.