Pub chain JD Wetherspoon has said that taxes remain the biggest dangers to the pub industry as it reported lower margins in the quarter and a projected drop in margins for the full year.

The chain, which has seen good results ahead of the market in recent times, brought in a 5% pay rise for staff last month and is opening up to 40 new pubs this year.

For the 13 weeks to October 26th, like-for-like sales increased by 6.3%, and total sales increased by 11.3%. Sales were good through August and September, but like-for-like growth decreased in October.

In a statement, the company said: “In recent budgets, the chancellor has announced heavily publicised and welcome cuts in beer duty. In contrast, in an initiative which achieved little recognition, changes were announced in 2012 to the VAT treatment of pub slot or 'gaming' machines. As a result, pubs were no longer to be allowed to set off all VAT charged by suppliers against VAT charged to customers.

“These sorts of tax increase penalise pubs, which are closing in great numbers, yet not supermarkets, which already benefit from a zero VAT rate on food, whereas pubs pay 20%. Supermarkets also pay far lower business rates per pint or meal than do pubs. Indeed, this government has presided over thousands of pub closures - perhaps more than any government in history.

“The pub industry recognises that governments need to balance the books, yet it is imperative for the future of pubs that political parties commit themselves to a sensible rebalancing of the tax system, so that there is fairness and equality between pubs and supermarkets - a rebalancing will produce more revenue for the government and more jobs in the economy. Stealth taxes, including the new treatment for gaming machines, are confusing and unfair for publicans and are very harmful to the industry.”