The boss of Wetherspoons has slammed a potential raise in the national living wage as an "unthinking retreat from market forces". Sir Tim Martin hit back at reports that Rachel Reeves plans to hike the wage as part of her second Autumn Budget in November. He warned of the damaging effects it would have on the already strained hospitality industry, which faces increases to energy bills to compound the issue.
He told The Times: "The hospitality industry has been squeezed between a doubling of energy costs since 2019 and a rocketing wage bill - pushing up costs, simultaneously, for all suppliers to the industry. The problem is an unthinking retreat from market forces, with the politicisation of the commanding heights of enterprise - wages and energy - and a blissful unawareness of the long-term economic consequences."
The founder and chairman of the pub chain previously cautioned that raids on employers would "undoubtedly add to underlying inflation in the UK economy".
Ms Reeves reportedly plans to increase the national living wage from £12.21 to at least £12.70 an hour, and extend it to workers between 18 and 21.
Sir Tim told The Telegraph that inflation was "umbilically linked to cost increases" and higher taxes would "always result in price increases for consumers".
He added: "Individual companies might try and keep prices the same, but these decisions are only a temporary respite.
"It is clearly high time for the UK to engage in a proper debate on these vexed issues, rather than the current tit for tat political discourse, financed, inadequately and temporarily, by huge stealth taxes."
A spokesman for HM Treasury said: "Pubs are vital to local communities, which is why we're supporting the hospitality sector through lower business rates, reduced licensing costs, and more flexibility for outdoor dining - alongside cuts to alcohol duty and a cap on Corporation Tax.
"By strengthening the national living and minimum wage for 3 million workers across all age bands, we aim to support business growth through reduced staff turnover and by helping to achieve higher productivity."
