Highlights
- Half-year profits expected to fall as costs jump £45m above predictions.
- One pub per day closed permanently in England and Wales during 2025.
- Chancellor Rachel Reeves promises support package for pubs within days.
JD Wetherspoon has issued a profit warning after revealing a £45m surge in costs driven by soaring energy bills, wages, repairs and business rates exceeded forecasts.
The pub chain's chair, Tim Martin, noted that the half-year profits for the 25 weeks ending January (18) are now "likely to be lower" compared with the same period in 2024, sending shares down more than 6 per cent in early trading on Wednesday.
The warning underscores mounting pressure on Britain's pub sector, which saw one venue close permanently every day in England and Wales last year.
Tax specialist firm Ryan's analysis of government statistics found total pub numbers, including vacant properties, fell from 39,989 in 2024 to 38,623 in 2025.
Pubs face multiple financial challenges including higher employer national insurance contributions, minimum wage increases, energy costs and inflation.
An impending business rates rise and inflation-linked alcohol duty increase from next month add further strain.
Government under pressure
Chancellor Rachel Reeves, speaking at the World Economic Forum in Davos, acknowledged the sector's difficulties and promised an imminent support package specifically for pubs, though not the wider hospitality industry.
"I do recognise the particular challenge that pubs face at the moment and so have been working with the sector over the last few weeks to make sure that the right support is in place," Reeves said. "We'll be announcing something in the next few days."
Martin, whose company operates approximately 800 pubs across the UK and Ireland, noted that the government had not consulted Wetherspoon about industry pressures.
"Energy costs in the UK are reckoned to be about the highest in the world," Martin told The Guardian.
"Labour costs are also very high. Energy and labour costs tend to creep into all other supplier costs."
Trade body UKHospitality has urged Reeves to reverse planned business rates increases, warning of accelerating job losses.
Chief executive Allen Simpson said hospitality venues faced £3.4bn in additional annual costs less than a year ago.
"We saw significant job losses before the budget, and we're seeing that continue to accelerate," Simpson told The Guardian.
The situation highlights the precarious state of Britain's pub industry as operators struggle with unprecedented cost pressures whilst awaiting government intervention.
