Wetherspoon is cutting the price of all food and drinks served in its pubs for one day only in September.
The popular pub chain has announced that prices will be reduced by 7.5% on Thursday, September 18, to highlight the benefit of a permanent VAT reduction in the hospitality industry. Wetherspoon has confirmed the price cut will apply to all of its food and drinks served in pubs, but in Scotland, prices will be reduced on food and non-alcoholic drinks only in line with Scottish licensing laws. The price cut means that a customer spending £10 on food and drinks will instead only pay £9.25 on ‘Tax Equality Day’, on September 18.
Wetherspoon has cut the price of its food and drinks for one day only for the past two years to campaign for equal tax between pubs and supermarkets.
Normally, all food and drinks in pubs are subject to 20% VAT, whereas supermarkets pay zero VAT on food and can use that saving to sell alcohol to customers at a discounted price.
Wetherspoon’s founder and chairman Tim Martin has called for a VAT cut of 12.5% in the hospitality sector and is urging Chancellor Rachel Reeves to create tax equality between businesses like pubs, bars and restaurants, and supermarkets.
He said: “The biggest threat to the hospitality industry is the vast disparity in tax treatment among pubs, restaurants and supermarkets.
“Supermarkets pay zero VAT in respect of food sales, whereas pubs, bars and restaurants pay 20 per cent. This tax benefit allows supermarkets to subsidise the selling price of beer.
“Pubs have been under fantastic pressure for decades, because of the tax disadvantages which they have with supermarkets. It doesn’t make sense for the hospitality industry to subsidise 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.”
Mr Martin added: “Customers coming to Wetherspoon’s pubs on Thursday 18 September will find the price of their food and drinks to be lower than normal.
“We call on the Chancellor to create tax equality between the hospitality industry and supermarkets.”
