Wetherspoons will be cutting prices of all food and drink by 7.5% for one day only on the 13th September as part of their campaign for fairer VAT pricing, at present all food and drink in pubs is subject to 20% VAT, compared to supermarkets which benefit from a zero VAT rate on all food.
The offer (7.5% discount on food and drink items) applies to Wetherspoons pubs in England, Wales and Northern Ireland. In Scotland due to licensing rules the discount only applies to food and soft drinks.
Tim Martin, Wetherspoon’s founder and chairman, said:
“Pubs suffer a huge disadvantage paying about 16p in business rates per pint versus about two pence for supermarkets.
“A reduction in the level of VAT on a long-term basis will create a level playing field and generate growth and jobs in an important and vital industry – especially in beleaguered high streets.”
Kate Nicholls, UK Hospitality Chief Executive, said:
“The tax disparity between the hospitality sector and supermarkets is still far too high.
“Pubs are paying around a third of their turnover in tax compared to a fifth for big supermarkets able to sell alcohol at very cheap prices.
“A cut in the rate of VAT for the hospitality sector can help address this unfairness and allow pubs and bars to invest in their businesses and staff members.”