13/03/2009 - Pub tax burden `is unsustainable`
The tax burden on pubs is now "unsustainable" says the boss of JD Wetherspoon as he announced a 2% rise in first-half profits.
Chairman Tim Martin said pubs are under huge pressure from the taxman as they suffer in the economic downturn that is forcing many to call their final "last orders". He said that Wetherspoon generated average taxes of around £530,000 for each of its pubs, compared with just £50,000 in after-tax profits.
He said that hikes in duty are costing the company an extra £15 million this year, on top of a £4 million bill resulting from new laws on holiday entitlements for staff. Despite this, the chain has boosted pre-tax profits to £30.8 million in the six months to January 25. Trading since then has seen like-for-like sales rise by 1.9%.
The firm has been helped by the success of its controversial 99p a pint offer, which Mr Martin said would remain in place for the "immediate future".
Copyright © Press Association 2009
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