Wetherspoon has confirmed it will cut the price of all food and drink items by 7.5% on Thursday, September 17, for one day only. The move is designed to highlight the benefit of a VAT reduction in the hospitality industry.
The national Tax Equality Day will see prices reduced across Wetherspoon pubs, but in Scotland, prices will be reduced on food and non-alcoholic drinks only, in line with Scottish licensing laws.
What the price cut means for customers
The price cut means that a customer spending £10 on a meal and drinks will see the bill drop from £10 to £9.25 on September 17.
Currently, all food and drinks served in pubs is subject to 20% VAT, compared to supermarkets, which benefit from a zero VAT rate on all food. As such, supermarkets are able to use that saving to sell alcohol to customers at a discounted price.
Campaign for tax equality
Wetherspoon has cut the price of its food and drinks for one day only for the past few years to campaign for equal tax between pubs and supermarkets.
Wetherspoon’s founder and chairman Tim Martin has previously called for a VAT cut of 12.5% in the hospitality sector and urged the government to create tax equality between businesses like pubs, bars and restaurants, and supermarkets.
He said: “Customers coming to our pubs on Thursday September 17 will find the price of their food and drink is lower than normal. We are keen to highlight the amount customers could save if VAT in pubs was lowered permanently.
“The biggest threat to the hospitality industry is the vast disparity in tax treatment among pubs, restaurants and supermarkets. It doesn’t make sense for the hospitality industry to subsidise supermarkets.
“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 and help the high street, of which pubs are an integral part.
“We call on the chancellor to create tax equality between the hospitality industry and supermarkets.”
