JD Wetherspoon chief Tim Martin has fired a fresh broadside at the government, accusing it of stacking the tax system in favour of supermarkets while punishing pubs.
He said the gulf in VAT and business rates is crippling hospitality businesses, hollowing out high streets and leaving pubs fighting with one hand tied behind their back.
“The entire hospitality industry is united in its view that pubs, clubs and restaurants pay wildly excessive taxes, especially VAT and business rates, in comparison with supermarkets,” Mr Martin said.
“This tax disparity is harming businesses and high streets, but also the social fabric of the nation – where, other than pubs, can you temporarily escape the attentions of your own family?”
Mr Martin said of the current VAT regime: “Supermarkets pay zero VAT in respect of food sales, whereas pubs and restaurants pay 20%... food for posh dinner parties in Notting Hill or the Cotswolds is VAT-free, whereas fish and chips at your local pub attracts the full 20%."
Mr Martin also estimates that pubs also pay 20 times more in business rates per pint than supermarkets - .5p in a supermarket versus 28p in a pub.
While UKHospitality has made the case for reducing the business rate multiplier, Mr Martin criticised Greene King’s suggestion to base rates on profits. “This would surely create a nightmare of complexity… creating a massive increase in demand for tax advisors, which is surely every citizen’s nightmare.”
His message to ministers was simple: “Keep It Simple, Stupid… All we’re asking for is equality with supermarkets… Tax equality equates to sensible economic policies – and we are sure that the entire nation will drink to that.”