THE boss of giant JD Wetherspoon has warned rising costs mean first-half profits will be lower than last year’s, while launching an attack on the “protectionist” trade policies of the European Union (EU).

The comments from arch-Brexiter Tim Martin came as Wetherspoon reported strong trading over the festive period.

Wetherspoon, which has 65 pubs in Scotland, reported that like-for-like sales increased by 7.2 per cent in the 12 weeks to January 20, with total sales 8.3 per cent higher than the same period around one year ago.

However, Mr Martin warned that with costs running higher than last year, first-half profits would be lower.

The company stated in November that the low level of unemployment was putting upwards pressure on wages, and confirmed yesterday that it had increased the pay of its 44,000 staff that month. Mr Martin said staff costs have increased by tens of millions of pounds over the period.

Mr Martin said: “Sales growth has been strong since our last update. Costs, as previously indicated, are considerably higher than the previous year, especially labour, which has increased by about £30m in the period, but also in other areas, including interest, utilities, repairs and depreciation.

“Profit before tax in the first half is expected to be lower than the same period last year. Our expectations for the full year are unchanged.”

As is now customary with Wetherspoon updates, Mr Martin waded into the Brexit debate with an attack on EU trade policies.

He repeated his assertion that the UK, and his own company, would “benefit from a free-trade approach” by avoiding a deal which involves a £39 billion payment to the EU.

Declaring that the House of Lords has confirmed there is no legal obligation for the UK to make the divorce payment, Mr Martin added: “This approach also means that the UK, without the agreement of the EU, can end some or all of the protectionist tariffs and quotas that apply on non-EU imports, including rice, oranges, bananas, coffee, wine, children’s clothes and over 12,000 other products - many of which are not produced in this country.

“Ending tariffs reduces prices for consumers, without loss of government income, since the proceeds are currently remitted to Brussels.”

Wetherspoon said it has spent £65 million so far in the current year on acquiring the freeholds of pubs which were previously tenancies. It has opened two new pubs so far, sold six, and said it plans to open between five and 10 outlets in the current financial year. Wetherspoon it expects net debt to be around £10m higher at the end of this financial year compared with its last year-end.

Shares closed down 3p at 1,193p.