Wetherspoon pubs across the UK are cutting the price of all food and drink by 7.5 per cent on Wednesday September 20.
The pubs are supporting a national Tax Equality Day, aimed at highlighting the benefit of a VAT reduction in the hospitality industry, backed by industry trade organisations.
Prices at the 900 Wetherspoon pubs will be reduced for one day only, in order to show the benefits of a VAT reduction.
At present all food and drink in pubs is subject to 20 per cent VAT, compared to supermarkets which benefit from a zero VAT rate on all food. As a result, supermarkets are able to use that saving to sell alcohol at a discounted rate.
Wetherspoon founder and chairman, Tim Martin, said: “ We are proud to support the campaign to reduce the level of VAT within the pub industry.
“Customers coming to our pubs on Wednesday September 20 will find the price of their food and drink is lower than normal.
“We are keen to highlight the amount customers would save if VAT in pubs was lowered permanently.
“So, for example, the total price of a meal and drinks for a customer would be reduced from £10 to £9.25 on Tax Equality Day.”
Mr Martin added: “A reduction in the level of VAT on a long-term basis will generate growth and create jobs in the important leisure and hospitality sector.
“Creating tax equality between pubs, restaurants and supermarkets will fulfil many government objectives including the creation of more jobs.
“It is a win win situation for the government and our industry.”