NO-NONSENSE pub chain JD Wetherspoon has blamed red tape and taxation for a reduction in the company's rate of expansion.

The firm, which opened 45 pubs in the year to July 27, said its decision was prudent to ensure its level of capital expenditure remained in line with its free cash flow.

In a statement, chairman Tim Martin said the Government's decision to hand over responsibility for pub licences from magistrates' courts to local authorities meant a substantial increase in fees and other regulatory costs for the company.

Mr Martin also critisised further tax increases which he said would cost about £2m in the current financial year and an increase in stamp duty for new leasehold properties costing around £500,000 a year.

He said: "Pubs currently pay approximately 40 per cent of their turnover in taxes of one kind or another, and further increases in this burden will mean that pubs become less competitive and more expensive, relative to an evening at home."

Last year, Wetherspoons opened 87 outlets.

It now operates 638 pubs across the UK, including three opened since the year end.

The firm reported like-for-like sales up 4.1 per cent in the full year and said this had slipped to 3.5 per cent during last month. Operating profit rose seven per cent to £75m during the period, while pre-tax profits were £56.2m - an increase of five per cent over last year.

Mr Martin, who has been vocal in the past on issues including his opposition to Britain's adoption of the euro and changes to the licensing laws, said he hoped to highlight the burden of red tape to the Government.