Martin warned a further duty rise on beer, wine and spirits would be the “last thing pubs need” as operators continue to face pressure from tax, labour, energy and food costs.
Join our WhatsApp channel: The Morning Round-Up
Get the biggest pub trade stories straight to your phone. Listen to our one-minute daily news briefing and receive breaking news, exclusives and sector updates throughout the day. Remember to turn notifications on in the top right corner!
Speaking to The Telegraph, he called on Prime Minister Andy Burnham and Chancellor John Healey to freeze alcohol duties and address what he described as the tax imbalance between pubs and supermarkets.
Martin said avoiding an excise duty increase would show the Government was “serious about helping pubs”.
He added that higher alcohol taxes would “hit pubs much harder than supermarkets”, because alcohol accounts for a larger share of pub sales.
Alcohol duty increased in line with inflation from February this year after the previous Chancellor did not announce a freeze at the Autumn Budget.
That followed earlier confusion over Government claims of a 1p cut to draught duty. The Treasury later confirmed to the Morning Advertiser (MA) that the 1p figure related to a February 2025 change, while alcohol duty was still set to rise in cash terms from February 2026.
Tax equality
Martin said hospitality taxes were created in an era when pubs, restaurants, hotels and clubs accounted for the vast majority of beer, wine and spirits sales.
He said: “In a nutshell, if the public wants pubs and restaurants to thrive, there has to be tax equality with supermarkets.
These comments are not anti-supermarket, which have done a magnificent job for their customers. They are just a plea for equal treatment.
Tim Martin
Martin has repeatedly argued pubs are at a disadvantage because they pay 20% VAT on food and drink sales, while supermarkets pay no VAT on most food and can use that saving to sell alcohol at lower prices.
The intervention comes as JDW prepares to cut food and drink prices by 7.5% for one day on Thursday 17 September as part of its annual Tax Equality Day campaign.
In Scotland, the discount will apply to food and non-alcoholic drinks only, in line with licensing rules.
Budget pressure
JDW said the campaign was designed to show the impact of a permanent VAT reduction for hospitality.
Martin has called for VAT on hospitality to be cut to 12.5%, arguing the move would help pubs, bars and restaurants invest, create jobs and avoid closures.
The comments come ahead of a Budget expected to be closely watched by pub and hospitality operators, with trade bodies continuing to call for action on VAT, business rates, employer national insurance, energy and regulation.
A Treasury spokesperson told The Telegraph: “The Chancellor is fully focused on his priorities, to boost business, help with the cost of living and support people in every postcode.
“As has always been the case, the Chancellor will set out decisions at fiscal events, rather than routinely commenting on rumour, speculation or proposals.”
