This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.theguardian.com/business/2016/sep/09/wetherspoons-founder-tim-marting-blasts-establishment-over-brexit-vote

The article has changed 7 times. There is an RSS feed of changes available.

Version 2 Version 3
Wetherspoon's founder rails at establishment over Brexit vote Wetherspoon's founder rails at establishment over Brexit vote
(35 minutes later)
JD Wetherspoon’s Eurosceptic chairman has attacked the political and economic establishment for doom-laden predictions about the impact of leaving the EU that he said have turned out to be false.JD Wetherspoon’s Eurosceptic chairman has attacked the political and economic establishment for doom-laden predictions about the impact of leaving the EU that he said have turned out to be false.
Tim Martin took aim at David Cameron, FTSE 100 bosses, the governor of the Bank of England, City economists and Goldman Sachs in a tirade accompanying the pub chain’s annual results. He also disparaged the CBI, the International Monetary Fund and the Organisation for Economic Co-operation and Development. Tim Martin took aim at David Cameron, FTSE 100 chief executives, the governor of the Bank of England, City economists and Goldman Sachs in a tirade accompanying the pub chain’s annual results. He also disparaged the CBI, the International Monetary Fund and the OECD.
Martin said: “The overwhelming majority of FTSE 100 companies, the employers’ organisation CBI, the IMF, the OECD, the Treasury, the leaders of all the main political parties and almost all representatives of British universities forecast trouble, often in lurid terms, for the economy in the event of the leave vote. What I call ‘Scare Story 1’ was that the act of voting leave would cause an immediate and profound downturn in the economy and that’s been proved to be entirely false.” “The overwhelming majority of FTSE 100 companies, the employers’ organisation CBI, the IMF, the OECD, the Treasury, the leaders of all the main political parties and almost all representatives of British universities forecast trouble, often in lurid terms, for the economy in the event of the leave vote,” Martin said.
He said Wetherspoon’s trading had improved since the end of its financial year and suggested the pick-up was caused by sporting success, better weather and the referendum result. Pre-tax profit excluding one-off items for the year to 24 July rose 3.6% to £80.6m on sales up 5.4%. “What I call ‘scare story one’ was that the act of voting leave would cause an immediate and profound downturn in the economy, and that’s been proved to be entirely false.”
Martin criticised Cameron and George Osborne for predicting families would eventually be £4,000 worse off and that mortgage rates would rise and house prices would fall after a vote for Brexit. Mark Carney, the BoE’s governor, supported these claims “in terms”, he said. He said Wetherspoon’s trading had improved since the end of its financial year and suggested that this was caused by sporting success, better weather and the referendum result. Pre-tax profit, excluding one-off items, for the year to 24 July rose by 3.6% to £80.6m, on sales that increased by 5.4%.
Martin, a long-standing critic of the EU, attacked the head of the Institute for Fiscal Studies, Britain’s most respected economic thinktank, for saying it was a given that economists were correct in predicting bad consequences from a vote to leave. Martin criticised Cameron and the former chancellor George Osborne for predicting that families would eventually be £4,300 worse off, mortgage rates would rise and house prices would fall after a vote for Brexit. Mark Carney, the Bank’s governor, supported these claims “in terms”, he said.
“This is a strange argument to advance since consensus forecasts from economists, who generally failed to forecast the last recession or the catastrophic flaws of the euro, are almost always delusional,” Martin said. Martin, a longstanding critic of the EU, attacked Paul Johnson, the director of the Institute for Fiscal Studies, for saying it was a given that economists were correct in predicting malign consequences from a vote to leave.
Economic surveys since the vote to leave on 23 June have been mixed. A report showing a recovery in the services industry during August followed a rebound for manufacturing and high street spending. But economists have said the UK could still slip into recession and have warned that higher prices and slowing investment will eventually take their toll. “This is a strange argument to advance, since consensus forecasts from economists, who generally failed to forecast the last recession or the catastrophic flaws of the euro, are almost always delusional,” he said.
Martin said: “They [the experts] didn’t say ‘in the long run’. The Treasury said interest rates would immediately go up and that it would cause so much uncertainty that unemployment would go up and there would be an immediate and severe shock. There is only one thing that is definitely true and that is democracy is better for your economy.” Economic surveys since the referendum on 23 June have been mixed. A report showing a recovery in the services industry during August followed a rebound for manufacturing and high street spending. But economists have said the UK could still slip into recession and have warned that higher prices and slowing investment will eventually take their toll.
Rival pub operator and brewer Greene King was warier about the economy than Martin. In a trading update, it said consumer confidence and leisure spending were threatened by the referendum result “and we are alert to a potentially tougher trading environment ahead”. Martin said: “They [the experts] didn’t say ‘in the long run’. The Treasury said interest rates would immediately go up and that it would cause so much uncertainty that unemployment would go up, and there would be an immediate and severe shock. There is only one thing that is definitely true and that is democracy is better for your economy.”
Martin said that having been proved wrong about the damaging effects of a Brexit vote, the establishment was raising unnecessary fears about whether Britain could do a trade deal with the EU and that trade would continue with or without a formal agreement. Rival pub operator and brewer Greene King was warier about the economy than Martin. In a trading update, the company said consumer confidence and leisure spending were threatened by the referendum result “and we are alert to a potentially tougher trading environment ahead”.
He added: “‘Scare Story 2’ is that if we don’t join the single market we are in deep trouble and that is across mainstream economists. That is also in my view absolute twaddle.” Having been proved wrong about the damaging effects of a Brexit vote, Martin said, the establishment was raising unnecessary fears about whether Britain could do a trade deal with the EU and that trade would continue with or without a formal agreement.
“‘Scare story two’ is that if we don’t join the single market, we are in deep trouble, and that is across mainstream economists. That is also in my view absolute twaddle,” he said.