JD Wetherspoon ‘more cautious’ on outlook due to Budget uncertainty
JD Wetherspoon has said it has become “more cautious in its outlook” as Britain’s best-known pub chain braces for the prospect of further tax hikes at the Budget later this month.
The firm, which operates around 800 pubs across the UK, reported a 3.7 per cent rise in like-for-like turnover for the 14 weeks to 2 November, led by a 5.7 per cent rise in drinks sales.
But the company’s revenue from hotel room bookings decreased by 6.3 per cent.
Wetherspoon chairman Tim Martin said: “A 10 per cent wage rise will increase the cost of a pint by about 15 pence in a pub versus about 1.5 pence in a supermarket.
“Increased labour costs are, consequently, dramatically widening the pricing differential between pubs and supermarkets, to the anger and consternation of customers.
“It is important to emphasise the above points since it’s not clear that they are fully appreciated by legislators, economists or the public.
“The company is pleased with the continued sales momentum but is mindful of the Chancellor’s Budget statement later this month and, as a result, is slightly more cautious in its outlook for the remainder of the year.”
Tim Martin blames ‘ludicrous’ corporate governance rules for lack of London IPOs
The boss of Wetherspoon took aim at “ludicrous” UK corporate governance rules, suggesting that they could be responsible for a dearth in flotations on the London Stock Exchange.
Tim Martin drew particular attention to the so-called “nine-year rule” under which independent directors must not serve on a company’s board for a period greater than five years.
“None of the chairmen of the mega-successful US technology companies (Microsoft, Apple, Meta, Amazon, Nvidia etc) comply with UK corporate governance guidelines, which include, for example, a ludicrous ‘nine-year rule’,” Martin said.
“As a matter of common sense, few sensible technology entrepreneurs would envisage a London flotation for this reason alone.
“Perhaps the UK powers-that-be don’t feel we need to try and attract these sorts of companies. However Nvidia, alone, is apparently worth nearly one and a half times the capitalisation of the entire London stock market.”
Earlier this year, London fell to as low as 23rd in a global ranking of IPO destinations.
Just £184m was raised on the London Stock Exchange in the first nine months of the year, a far cry from the roughly £17bn raised as recently as 2021 and making 2025 the worst year for listings in more than three decades.