Yahoo Finance Wetherspoons is cutting all food and alcohol prices today in protest over tax
Wetherspoons will cut the price of food and drink in all 900 of its pubs today in a protest over Value Added Tax (VAT).
The pub chain announced that its England, Wales and Northern Ireland outlets will reduce the price of all food and alcohol by 7.5pc, while in Scotland food and soft drinks only will undergo the same price cuts.
The move is in protest over the high prices faced by pub-goers, as all food and drinks in pubs are currently subject to 20pc VAT, whereas food and alcohol in supermarkets benefit from zero-rate VAT, allowing retailers to use that saving to undercut pubs and sell alcohol at a discounted rate.
Wetherspoons will be protesting alongside thousands of other pubs tomorrow in honour of national Tax Equality Day which aims to highlight the benefit of a VAT reduction in the hospitality industry.
Research carried out for the British Beer and Pub Association showed that cutting VAT for the hospitality industry by only 5pc would create 78,000 new jobs, providing a big boost to the economy.
Wetherspoon’s chairman, Tim Martin, said: “We are proud to support the campaign to reduce the level of VAT in the pub industry.
"On Tax Equality Day, customers in our pubs will find the price of their drinks and food to be lower than normal. We are keen to highlight the amount which customers would save, if VAT in pubs were lowered permanently."
It means that someone visiting a Wetherspoons today who spends £10 on food and drink will only pay £9.25.
The pub chief and outspoken Brexiteer, continued: “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 among pubs, restaurants and supermarkets will fulfil many government objectives.
"It will create more jobs and raise the amount of taxes which the government receives, since pubs and restaurants pay more taxes and create more jobs than supermarkets do. It is a win-win situation for the Government and our industry," he said.
