A Burnham-On-Sea pub is to cut the price of all food and drink by 7.5 per cent on Thursday September 15th to highlight the benefit of a permanent VAT reduction in the hospitality industry.
Prices at The Reeds Arms on Burnham-On-Sea seafront will be reduced for one day only to mark Tax Equality Day in Wetherspoon pubs.
So, for example, a customer spending £10 on food and drink will only pay £9.25 on Tax Equality Day.
All food and drink in pubs is subject to 20 per cent VAT. 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.
The pub’s manager, Nic Pipe, told Burnham-On-Sea.com: “It is 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. It doesn’t make sense for the hospitality industry to subsidise supermarkets.”
“Customers coming to The Reeds Arms on Thursday September 15 will find the price of their food and drink is lower than normal.”
“We urge the Chancellor to create tax equality between pubs and supermarkets.”