JD Wetherspoon Profit Slumps 28% as Founder Blames UK Tax Rises

JD Wetherspoon reported pre-tax profits fell to £58.6m in the year to July, down from £81.4m a year earlier, despite sales rising 5.2% to £2.24bn. Founder Tim Martin blamed Labour's tax increases for the £23m decline, saying hospitality has "borne the brunt" of government-led cost increases. Costs rose 5.3% year on year, with wage increases adding £46m, repairs £31m and business rates £9m. Labour raised employers' National Insurance from 13.8% to 15% and cut the payment threshold from £9,100 to £5,000. Martin renewed calls to cut hospitality VAT from 20% to 10%, arguing pubs have become more expensive than supermarkets, driving closures and job losses. The group still plans to open about 15 managed pubs and up to 20 franchised sites this year. Like-for-like sales rose 8.6% in the nine weeks to September 27, aided by heatwaves and the World Cup.