Wetherspoon boss Tim Martin has urged the Chancellor to spare pubs and restaurants from further tax increases after the group reported a sharp fall in annual profits.
The pub chain said profit before tax and separately disclosed items fell 28% to £58.6million in the 52 weeks to July 26, despite revenue rising 5.2% to £2.24billion and like-for-like sales increasing 4.2%.
Operating profit on the same basis fell 17.9% to £120.2million, while the full-year dividend was maintained at 12p per share.
Martin used the results to issue a fresh warning over the tax burden facing hospitality ahead of the Chancellor's next Budget.
He said: “The hospitality industry, as many commentators and companies have noted, has borne the brunt of government-led tax and regulatory cost increases, especially in the last two budgets. This has resulted in pubs becoming even more expensive than supermarkets, leading to job losses, closures and high street dereliction.
“It is to be hoped that the powers-that-be will refrain from any further increases, since pubs and restaurants pay around 40% of their receipts as taxes of one sort or another - and provide immense financial support to the Treasury, as well as social support to the community.
“In addition, as Jacques Borel, Tom Kerridge and multifarious individuals and organisations have noted, including, indeed, the Prime Minister and other party leaders, VAT is the main culprit in the disparity with supermarkets - and the hospitality industry will not be able to survive or thrive unless taxes and other costs are equalised.”
Trading has strengthened since the year end, with like-for-like sales up 8.6% in the nine weeks to September 27, helped by what Martin described as “exceptional weather”.