Wetherspoons warns of price rises as boss repeats call for no-deal Brexit

Pub chain said it will hike prices rather than cut costs on staff and service

Caitlin Morrison
Friday 14 September 2018 07:48 BST
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Wetherspoons will replace champagne with British sparkling wines as Brexit approaches

JD Wetherspoon has reported a jump in sales in the last year, but warned prices are likely to rise over the coming 12 months.

The discount pub chain said like-for-like sales went up 5 per cent in the year to 29 July, while revenue rose 2 per cent to £1.69bn, and pre-tax profit increased by 4.3 per cent to £107m.

Tim Martin, the group’s chairman, used the results statement to reiterate his support for a hard Brexit.

“There will be a huge gain for business and consumers if the UK copies the free trade approach of countries like Singapore, Switzerland, New Zealand, Australia, Canada and Israel, by slashing protectionist EU import taxes (‘tariffs’), on leaving the EU in March next year,” he said.

“If parliament votes to end tariffs and rejects the Chequers deal, consumers and business will benefit additionally by avoiding a cost of £39bn, or £60m per UK constituency, in respect of the EU divorce payment – for which there is no legal obligation.

“Unfortunately, some individuals, businesses and business organisations have mistakenly, or misleadingly, repeated the myth that food prices will rise without a deal with the EU.

“In fact, the only way prices can rise post-Brexit is if parliament votes to impose tariffs. The EU will have no say in the matter, provided that the government does not sign away the UK’s rights in a deal in the meantime.”

Mr Martin said an end to tariffs would reduce shop and pub prices, however, he also warned that prices at Wetherspoons branches were likely to rise in the near future, because the chain is unwilling to cut costs at the expense of customer service.

“I think what we’ll do is keep our prices as low as we reasonably can, they might have to go up a little bit, and just do the right thing and hope that is compensated by rising sales which will pay for the cost increases,” he told the BBC.

Wetherspoons has begun replacing EU-made products such as champagne with British items, and said it intends to buy less beer from the EU and swap it for brewers in the UK and outside Europe.

Earlier this week, the group imposed a ban on dogs in its pubs.

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