UK Pub Chain Voices Concern Over Taxes

by Robin Pilgrim, LawAndTax-News.com, London

16 March 2009

Tim Martin, Chairman of UK pub chain J D Wetherspoon, has accused the country's government of imposing "unsustainable" new laws which could see many local pubs taxed out of business.

Mr Martin argued that recent increases to alcohol duties combined with a new GBP4m (USD5.55m) staff holiday bill had significantly impacted the UK's pubs.

Using his own business as an example, Martin explained that around GBP530,000 (USD737,000) in tax was generated by each of the chain's pubs, whilst pre-tax profits registered a mere GBP50,000 (USD69,600).

Voicing his concern, Martin commented:

“The government seems not to understand the economic impact of new taxes and legislation and continues to impose new burdens at a huge rate.”

“Opportunistic 'tax grabs' and employee legislation to 'curry favour' with voters which businesses cannot afford will prove to be counter productive for the government”, he added.

Martin has urged the government to consider either capping tax rates at their current level, or reducing them significantly for a prolonged period.

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