Wetherspoon boss Sir Tim Martin has branded prime ministers and other legislators "dinner party-goers rather than pub-goers" as he hit out at tax "imbalance".
In a trading update released this morning, Martin lashed out at soaring labour costs and said VAT "distortions" would "inevitably create more supermarkets and less pubs".
The update from the industry powerhouse, which owns 796 pubs across the UK, including two in Aberdeen, included increases in bar sales, food sales and slot machine income In the 25 weeks to 19 January 2025.
There was, however, a drop in hotel room sales.
In a statement issued alongside the update, Sir Tim Martin said: "From 1 April 2025 labour-related costs at Wetherspoon will increase by around £60million per annum.
"Government-mandated wage increases have a significantly bigger impact on pub and restaurant companies than supermarkets.
"As previously highlighted, supermarkets pay no VAT in respect of food sales, whereas pubs pay 20%. This tax advantage allows supermarkets to subsidise the price of beer they sell.
"A direct consequence, as Morgan Stanley has recently calculated, is that beer volumes in the on-trade (mainly pubs, clubs and restaurants) have decreased by an incredible 52% between 2000 and 2023.
"It is a clear principle of taxation that taxes should be fair and equitable, as between different types of companies. The VAT distortions that exist today will inevitably create more supermarkets and less pubs.
"Given the public's love of pubs, the only possible explanation for this tax discrepancy is that prime ministers and other legislators, in the 45 years since Wetherspoon started trading, have been dinner party-goers, rather than pub-goers.
"Food at dinner parties is VAT-free, subsidised by the legendary "man on the Clapham omnibus", who has fish and chips at his local pub.
"Wetherspoon therefore calls upon Sir Kier Starmer to redress this imbalance, thereby striking a blow for tax equality and ending discrimination in favour of dull (yawn, yawn) dinner parties.
"The company is confident of a reasonable outcome for the year, although forecasting is more difficult, given the extent of the increased costs."
FTSE 100
The UK's flagship share index, the FTSE 100, was up 27-points at 8,558 shortly after opening this morning.
Brent crude oil futures were down 0.23%, trading at $76.58 a barrel.
Companies reporting today