Wetherspoons pubs across Shropshire to cut prices of food and drink for one day to highlight tax inequality
Wetherspoons pubs from across the region are set to reduce the prices of food and drink for one day as part of a campaign to highlight the benefits of reducing VAT in hospitality.
The pubs across Shropshire will be among 794 Wetherspoons pubs which will cut the price of all food and drink by 7.5 per cent on Thursday, September 18 as a way of highlighting the benefit of a permanent VAT reduction in the hospitality industry.
The chain said the move on what is called “tax equality day” is aimed at demonstrating the unfairness of the differing tax treatment of alcohol and food sold in pubs compared with shops.
The initiative means customers will save 75p on every £10 spent, which means that, for example, a customer spending £10 on food and drink will pay £9.25 on Tax Equality Day.
All food and drink in pubs is currently subject to 20 per cent VAT, whereas by comparison, supermarkets pay zero VAT on food, and are able to use that saving to sell alcohol to its customers at a discounted price.
A spokesman for Wetherspoons said: "Customers coming to our pubs 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 it has with supermarkets.
"The tax benefit allows supermarkets to subsidise the selling price of beer.
"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."
Rates of VAT for the hospitality sector were reduced during the Covid-19 pandemic, to 5 per cent in July 2020, rising to 12.5 per cent from October 2021 and March 2022.
Wetherspoon’s 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.
“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 pubs and 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.
“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.”
To find out where the nearest Wetherspoons, go to the Wetherspoons website.
