Wetherspoon founder Tim Martin has told the chancellor that a proposed increase in value-added tax on food sold in pubs, restaurants and cafes risk undermining “integral parts of high streets”.
Ahead of Rishi Sunak’s Spring Statement tomorrow, the listed pub operator has issued a stock exchange notice titled “Economic advice to chancellor from Wetherspoon”.
“It doesn’t make economic sense that food bought in pubs, restaurants and cafes attracts VAT of 20%, when food is VAT-free in supermarkets,” Martin said. “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.”
Martin said it was “an accepted principle of taxation that it should be fair and equitable, treating businesses that sell similar products in a similar way”, adding: “Supermarkets have clearly used their favourable tax treatment to subsidise the price of beer, wine and spirts over recent decades…
“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.”
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