He argues it is causing a reduction in investment and job vacancies

The founder and chairman of JD Wetherspoon has warned the minimum wage is diminishing people’s living standards by restricting companies’ capacity to boost pay and recruit staff.

Sir Tim Martin, who lives in Devon, argues that rather than function as a safety net to safeguard workers, minimum wage is now causing more damage than benefit, following rises under both the previous Conservative administration and the current Labour government.

In an interview with the Telegraph, Sir Tim said: “The minimum wage seems to be lowering the standards of living by reducing investment and job vacancies and by increasing pay for new starters at the expense of experienced staff.

“It was a supposed to be a safety net but it’s turned into a competition between political parties as to who will offer the biggest rise.”

Most recently, the government confirmed the hourly rate for over-21s will climb by 50p to £12.71, whilst workers aged 18-20 will witness an 85p increase to £10.85, from April 2026, as reported by City AM.

A decade ago, the minimum wage stood at £7.20, with the policy introduced in 1999 to eliminate low pay.

Sir Tim’s remarks position him as the latest senior figure to question the standards of minimum wage, after Reeves’s hike was claimed to be pushing up employers’ labour expenses.

Scrutiny has gathered momentum, as Britain continues to wrestle with a cooling employment market, with the latest data showing headline unemployment has reached a five-year high of 5.2 per cent.

Inflation-busting rises have resulted in businesses recruiting fewer staff, particularly younger and less experienced workers, with the hospitality sector especially hard hit as pubs grappled with increasing business rates.

However, from April 2026, pubs in England will benefit from a 15 per cent reduction on business rates following widespread outcry. Official data revealed that the number of payrolled employees dropped by 124,000 in the 12 months to January.

Sir Tim has also previously supported Reform’s proposed pub support package, contending it would “utterly transform” the pub landscape.

In a stock exchange announcement, Martin said Reform’s proposals would provide pubs with “tax parity” with supermarkets.

He said: “By eliminating the tax differential between supermarkets and the hospitality industry, and restoring margins to devastated businesses, these changes would enable pubs to regain some, or all, of their lost trade.”

Reform’s £2.3bn pub package includes a commitment to reduce VAT in the hospitality sector by 10 per cent as well as beer duty by 10 per cent.

The party has also vowed to reverse Labour’s rise in employers’ national insurance contributions and progressively remove business rates for pubs.

The government has also committed to abolishing what it described as “discriminatory age bands” by scrapping the youth rate of minimum wage, which has existed since the system was introduced in 1999. However, the government is now understood to be reconsidering the move amid concerns it could exacerbate youth unemployment.

Graduates have increasingly been raising alarm about the jobs market, as fierce competition, reduced recruitment across certain sectors and a decline in vacancies has left many struggling to find work.

Combined with employers’ economic anxieties and technological shifts, entry-level positions in particular have taken a significant hit.

Alan Morgan, chief executive of Bella Italia owner Big Table Group, cautioned that the government’s ambition to scrap the youth rate of minimum wage would result in fewer employment opportunities.

Morgan said: “We completely agree with giving people the same pay for the same experience and outputs.

“However, by making the pay rates the same for age groups who have less or no experience, it does create a risk of employers reducing the amount of younger people they employ.”

Jeremy Hunt abolished the youth rate for 21 and 22-year-olds during his tenure as chancellor in 2024.

The Italian-headquartered firm has been in talks for months over £1bn contract with the UK government

A Somerset helicopter maker says it has had “good dialogue” with the government regarding a £1bn contract just three months after it warned its only UK factory was under threat.

Italian-headquartered Leonardo owns Britain’s last helicopter plant in Yeovil. The West Country site has been an aerospace hub for more than 100 years and employs thousands of people directly and in the supply chain.

Although the site makes helicopters for civil use, such as search and rescue, the MoD is the company’s most important customer. A decision to withdraw from the historic Somerset site would have major implications for the local economy.

In November, Leonard chief Roberto Cingolani told investors the company could not “subsidise Yeovil forever” after delays to an agreement with the British government over the contract. The company is the only bidder and has been in talks with ministers for months, leaving the site’s 3,000-strong workforce in limbo.

However, it is understood that Leonardo’s vice president of market development, Adam Wardrope, is “feeling hopeful” after recent discussions with officials.

The contract is for Leonardo’s conventional helicopters, but earlier in February the firm unveiled its latest model – Britain’s first autonomous full-size helicopter, known as Proteus. The helicopter has been designed to conduct various missions such as anti-submarine warfare.

Mr Wardrope told the BBC that Proteus is “part of the future of Yeovil” but that Leonardo’s Somerset workforce was “desperate” to learn about the company’s future.

“We’re still very busy, things like Proteus, support contracts, and international customers we’re servicing,” Mr Wardrope told the BBC. “Everyone’s very busy, there’s still a future in the fact that there’s lots of work to do.”

Ben Clarke of workers union Unite said: “Any employee who works on the Yeovil site is definitely in a slight confusion as to what’s happening at the moment.

“The Government needs to wake up and understand we’re having these delays by not giving an answer to Leonardo either way, it’s putting huge pressure on Leonardo and the constituency.”

The news comes just days after Prime Minister Sir Keir Starmer was reported to be considering a hike in the UK’s defence spending.