UK

Wetherspoon boss Tim Martin accuses Tories of sidelining business

The pro-enterprise philosophies of Margaret Thatcher, and even Tony Blair, are long gone. 

Daniel Woolfson
Fri, 6 October 2023 

Wetherspoon chairman Tim Martin said the Tories have ‘patently made the UK uncompetitive’ - Heathcliff O'Malley

The boss of JD Wetherspoon has accused the Tories of sidelining businesses as warring factions in the Government clash over its direction ahead of the next election.

Tim Martin, founder and chairman of the high street pub chain, said changes such as Rishi Sunak’s increase to corporation tax from 19pc to 25pc in April this year had made the UK less attractive to investors.

He said: “It’s not so much a ‘failure to support’ [by the Conservatives] as a lack of belief in free enterprise. Corporation tax would be a good example – it used to be taken as read that you needed a tax system that encouraged businesses to set up in this country.

“By pushing up corporation tax so much, the Government has patently made the UK uncompetitive with Ireland and has discouraged foreign investment in the UK.”

On Wednesday, Mr Martin, a prominent backer of Brexit, told LBC Radio that he could now see himself voting for Labour “if they had a decent set of policies”.

It comes just days before Labour’s party conference begins in Liverpool, with Sir Keir Starmer and Rachel Reeves having launched a “prawn cocktail offensive 2.0” in an effort to woo business leaders ahead of the next election and take advantage of divisions in the Tory party.

Mr Martin added: “The Tories will have sidelined businesses for sure. Although not many business owners are convinced Labour or the Lib Dems are better.

“In general things have changed. There is less support from the main parties for the benefits of free enterprise and there are less senior politicians who have experience of free enterprise.

“The consequence is greater reliance on governmental action. The pro-enterprise philosophies of Margaret Thatcher, and even Tony Blair, are long gone. We will see where that takes us.”

Growing discontent toward the Tories has been voiced by prominent business leaders in recent weeks. Carpetright founder Lord Harris, a lifelong Tory peer, said last month the party did not “deserve” to win the next election, while Duncan Bannatyne, the health club mogul who previously supported Margaret Thatcher, said he believed Sir Keir was the “best of two bad candidates”, calling Mr Sunak’s handling of the economy “terrible”.

JD Wetherspoon posted record sales on Friday after drinkers sought out more affordable pints due to the cost of living crisis.

The pub chain said revenues rose by 10.6pc to hit £1.9bn last year, as it fought off inflationary pressures to secure its first profit since the pandemic

Mr Martin said the success was thanks to its bid to keep prices lower despite soaring costs.

He said: “Prices have increased, but the gap between Wetherspoon and competitors has been maintained or increased. Competitiveness has been retained.”

Pre-tax profits at the chain rose to £42.6m over the year compared with losses of £30.4m in 2022.

However, they were still lower than pre-pandemic, when they stood at £102.4m.

This led to a 4pc drop in the company’s shares on Friday morning.

However, sales have since rebounded across Wetherspoons’ 800 UK pubs, with drinks up 9pc and food rising 17.7pc. Sales from slot and fruit machines also shot up by 26.4pc.