Two Wetherspoon pubs in Bolton will cut prices for one day this week as part of a nationwide campaign calling for a permanent VAT reduction in the hospitality industry.
The Spinning Mule in Nelson Square Bolton and The Robert Shaw in Market Street, Westhoughton will lower food and drink prices on Thursday September 18 to mark Tax Equality Day in the Wetherspoon pubs.
This price cut of 7.5 per cent is designed to show the Government and customers the benefit a permanent VAT reduction could have.
For example, a customer typically spending £10 on food and drink will pay only £9.25 on the day.
Manager of The Robert Shaw, Cheryll Kean, said: "Customers coming to the pub on Thursday, September 18, will find the price of their food and drink is lower than normal.
"It’s unfair that supermarkets pay zero VAT on food, but pubs pay 20 per cent.
"Pubs have been under fantastic pressure for decades due to the tax disadvantages with supermarkets."
"A VAT cut to 12.5 per cent is needed to ensure that pubs continue to thrive.
"We urge the Chancellor to create tax equality between pubs and supermarkets."
Currently, pubs, restaurants, cafes and bars across the UK pay 20 per cent VAT on food and drink sales, while supermarkets pay no VAT on food, allowing them to sell alcohol at lower prices.
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Wetherspoons to slash prices for one day this week over tax ‘disparity’
The company Wetherspoons which operates 794 pubs across the UK and Ireland says the tax disparity is a key threat to the future of the industry.
Wetherspoon founder and chairman, Tim Martin, said: "The biggest threat to pubs and the hospitality industry in general is the vast disparity in tax treatment among pubs, restaurants, and supermarkets.
"Pubs have been under fantastic pressure for decades because of the tax disadvantages which they have with supermarkets.
"A VAT cut to 12.5 per cent is needed to ensure that pubs, bars, and restaurants do not continue to close, but instead thrive, invest, and create new jobs."
Kate Nicholls, chairwoman of UK Hospitality, also supports the campaign, stating that a reduced VAT rate would lead to lower prices, more jobs, and the regeneration of high streets and communities.
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