The boss of JD Wetherspoons has warned the Chancellor that her tax rises will fuel inflation amid growing fears she will target businesses once again in her upcoming Budget.

Sir Tim Martin said recent raids on employers and new recycling levies would “undoubtedly add to underlying inflation in the UK economy”.

Speaking to The Telegraph, the Wetherspoons chief executive said inflation was “umbilically linked to cost increases”, saying higher taxes would “always result in price increases for consumers”.

Sir Tim added: “Individual companies might try and keep prices the same, but these decisions are only a temporary respite.”

He said Wetherspoons would “endeavour to keep price increases to a minimum”.

However, the company said it was grappling with a spate of cost increases. It said it had been dealt a £60m yearly hit from the minimum wage rise and National Insurance changes in April, which pushed up contributions for employers, as well as a £2.4m hit from the new recycling levy.

Wetherspoons said it was also facing higher energy costs following £7m in “stealth taxes” around moving Britain towards renewable energy and needing more standby resources. It said companies were being hit by these new levies to fund the building of nuclear power stations and to subsidise energy intensive industries.

Sir Tim said other countries had questioned this shift to nuclear, adding: “It is clearly high time for the UK to engage in a proper debate on these vexed issues, rather than the current tit for tat political discourse, financed, inadequately and temporarily, by huge stealth taxes.”

The warning comes amid mounting calls from business chiefs for Rachel Reeves to rule out further tax rises in her upcoming Budget, as inflationary pressures start to mount.

Earlier this week, Ken Murphy, Tesco’s chief executive, told the Chancellor that “enough is enough” on tax rises on corporate Britain. He said it was becoming increasingly difficult to keep prices down for customers, with shoppers “worried about what lies ahead”.

A survey from KPMG on Friday revealed that consumer confidence in the economy has fallen to its lowest point this year.

Earlier this week, Ms Reeves left the door open to another tax raid on corporations. She said it was important that Britain’s tax regime was “internationally competitive”, but “businesses recognise, like everybody does, that paying taxes is important to support the economy”.

The warning from the Wetherspoons chief came as the company revealed a 10pc rise in pre-tax profits for the year to the end of July, hitting £81m. It said sales were up 5pc on a like-for-like basis.

Sir Tim said the company expected a “reasonable outcome for the financial year, although government-led cost increases in areas such as energy may have a bearing on the outcome”.

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