THE boss of JD Wetherspoon has warned the sugar tax will have a bigger impact on pubs than the grocery retail sector, while questioning its ability to tackle the country’s rising obesity problem.

Tim Martin said the soft drinks industry levy, which will come into effect on April 6, is “typical” of the type of legislative change which “hits pubs much harder than the supermarkets”. “A lot of people say to me, “[why don’t you] just pass it on to the customer?” But if you put prices up it is another chipping away at the affordability of the pub. And I don’t think it will do anything for obesity,” Mr Martin said.

Mr Martin’s comments came as Wetherspoon, which has more than 60 pubs across Scotland, lifted underlying profits by 20.6 per cent to £62 million in the 26 weeks ended January 28, with like for like sales up 6.1%.

However, Mr Martin warned that like for like sales would be lower in the second half as the company anticipates higher costs, including on pay, taxes and utilities. He said the company was “cautious” in its outlook for the next six months. Investors sent shares down by 6.2% to 1,214p.

Wetherspoon’s first-half performance bucked the malaise of the wider casual dining sector, where major operators such as Byron and Jamie’s Italian have closed outlets amid rising costs and flagging consumer confidence. Asked why Wetherspoon has prospered while major casual dining operators have toiled, the pro-Brexit campaigner suggested some brands have expanded too quickly and been hasty in taking expensive city centre sites. Wetherspoon was trading for 30 years before it moved into central London, he said.

Meanwhile, Mr Martin again used the occasion of Wetherspoon’s results to enter the Brexit debate. He disputed the stance taken by the Confederation of British Industry (CBI) which, in his words, said “we will all go to hell in a hand cart if we don’t get a deal.”

Claiming that this position "weakens the negotiating power" of the Government, Mr Martin said the UK would be better off exiting the European Union with no deal than striking a bad deal with Brussels. He added that Theresa May's Government was handling the negotiations well given the level of "disinformation" around the Brexit debate.