EXTENDED producer responsibility tax is to cost JD Wetherspoon £2.4 million in the current year, the pub group has revealed in its annual accounts.
The chain warned that the levy on packaging – and increases in national insurance and labour rates – will ‘undoubtedly’ add to underlying inflation in the UK economy.
Despite the rising costs, JD Wetherspoon announced strong financial results, with revenue increasing 4.5% to £2.13 billion, like-for-like sales rising by 5.1%, and pre-tax profit growing by 10.1% to £81.4 million.
Commenting on the results, Tim Martin, chairman of JD Wetherspoon PLC, said, “As previously indicated, increases in national insurance and labour rates will result in cost increases of approximately £60 million per annum, and non-commodity energy costs will add £7 million.
“The recently introduced extended producer responsibility tax, a levy on packaging, referred to in the table on page 9, will cost £2.4 million in the current year, an increase of £1.6 million. Cost increases such as these will undoubtedly add to underlying inflation in the UK economy, although Wetherspoon, as always, will endeavour to keep price increases to a minimum.”
