Wetherspoon hits out at Government plans

Pub chain JD Wetherspoon has hit out at the increase in employers' national insurance contributions, which it claims will cost it about £1m a year. The attack came as Wetherspoon reported a 23% rise in sales during the first quarter of its financial year.

As well as the increase in national insurance contributions, Wetherspoon criticised the proposed increase in excise duty on premium packaged spirits such as Smirnoff Ice, which it claimed would cost the company about £5m "as well as further increasing the duty differential between Britain and France, eroding the competitiveness of an industry which already pays over 40% of turnover on tax and duty."

It also attacked the proposed transfer of responsibility for liquor licensing from magistrates to local authorities. This, it said, would lead to a hike in the annual licensing fee from about £10 a pub to £400.

The company added: "The Government should listen to the 94% of licensees who support the retention of magistrates and should reduce excise duty to levels comparable to those in France."

Sales in the 13 weeks to 27 October increased by £32m to £173.1m compared with the same period last year. Like-for-like sales rose by 5.3%, compared with 6% in the corresponding period in 2001.

Eight pubs opened during the three months, bringing Wetherspoon's total to 616.

"As a result of our consistent trading performance, we are optimistic for the Christmas season," the company concluded.