Wetherspoon’s will slash the price of food and drink for a day to protest tax burden on pubs | City A.M.

Pub chain JD Wetherspoon has announced that it will hold another “Tax Equality Day”, reducing the price of all food and drink to protest VAT.

Spearheaded by founder Tim Martin, the protest calls on the government to lower the tax burden on the hospitality industry.

Food in pubs is subject to 20 per cent VAT, whereas many food items sold in supermarkets are not subject to the levy.

Martin said the additional tax burden on pubs puts the industry at a disadvantage.

“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,” he said.

The campaign day will take place on 13 September. In England, Wales and Northern Ireland, all food and drink prices will be reduced by 7.5 per cent. In Scotland the discount will apply to food and soft drinks or hot drinks.

It follows a similar campaign day last year when the pub chain reduced prices ahead of the Autumn Budget.

Last year Philip Hammond froze alcohol duty, in a move which relived pub and restaurant operators. But the industry is concerned that the tax could be increased again in this year’s Budget.

Kate Nicholls, chief executive of industry body UK Hospitality, said the Wetherspoon’s day of price reductions was helping to highlight the disproportionate amount of VAT paid by hospitality businesses.

“The tax disparity between the hospitality sector and supermarkets is still far too high,” she said. “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.”

It comes as campaigners call on the government to offer extra help for the sector as pubs disappear at a rate of 25 every week.