JD Wetherspoon says tax rises are hitting drinkers

JD Wetherspoon says tax hikes are keeping people out of its pubs.

The chain today admitted that like-for-like sales fell 0.8% in the 13 weeks to April 25 and said it feels "slightly more cautious" about the year ahead.

Wetherspoon blamed the effect of recent VAT and duty increases and the risk of "more subdued consumer expenditure" for its gloomy outlook.

The group, which is opening 45 new pubs in the year to July and already runs more than 750, said it was still seeing substantial opportunities to buy sites at reasonable prices and added that it was "confident" about prospects for the financial year.

Wetherspoon also said it received nearly £15 million for overpayment of VAT on amusement machines.