Wetherspoon Chairman Criticises Proposed Living Wage Increase

The chairman of JD Wetherspoon has voiced strong opposition to anticipated rises in the national living wage, describing the policy approach as a departure from market-driven economics.

Tim Martin has responded critically to speculation surrounding Chancellor Rachel Reeves’ forthcoming Budget, which is expected to include wage increases for workers. The pub operator has highlighted concerns about mounting pressures facing hospitality businesses, particularly the combination of elevated energy costs and rising labour expenses.

Speaking to national media (The Times) , Martin outlined the sector’s predicament, noting that energy costs have doubled since 2019 while wage bills have increased substantially. He characterised the situation as government intervention in fundamental business operations—wages and energy—without adequate consideration of long-term economic impacts.

The Wetherspoon founder had previously warned that additional burdens on employers could fuel inflationary pressures within the UK economy.

Reports suggest the Chancellor is considering raising the national living wage from its current £12.21 per hour to approximately £12.70, with the measure potentially extending to workers aged 18 to 21.

This follows guidance from the Low Pay Commission, the government’s advisory body, which recommended a 4% increase from April to maintain the wage at the target level of two-thirds of median earnings.

The hospitality sector has experienced significant wage growth in recent years, with minimum pay rising by 6.7% this April. Many operators report difficulties managing costs alongside the concurrent increase in employer National Insurance Contributions.

Martin argued that inflation remains directly connected to rising costs, asserting that higher taxation inevitably translates to increased prices for consumers. He suggested that whilst individual businesses may attempt to absorb costs temporarily, such measures provide only short-term relief.

The Wetherspoon chairman called for substantive policy debate on these economic issues.

A Treasury spokesperson responded by emphasising government support for the hospitality industry, citing measures including reduced business rates, lower licensing fees, enhanced outdoor dining provisions, alcohol duty cuts, and a Corporation Tax cap.

The spokesperson added that strengthening the national living and minimum wage for approximately three million workers aims to support business growth through improved staff retention and enhanced productivity levels.

The debate comes as the hospitality sector continues to navigate post-pandemic recovery alongside broader economic challenges.