Wetherspoon plans to slash food and beverage prices by 7.5% today to draw attention to the impact of taxes on their operations. The pub chain, known as Wetherspoons, aims to emphasize the importance of a permanent VAT reduction for the struggling hospitality industry through this initiative called “tax equality day.”

This campaign intends to showcase the disparity in tax levied on alcohol and food sold in pubs versus supermarkets to customers. Customers visiting Wetherspoon’s pubs on September 18 will enjoy a 7.5% discount on their purchases, saving 75p for every £10 spent. While food and drinks in pubs are subject to a 20% VAT, supermarkets pay no VAT on food items.

According to Wetherspoons, supermarkets leverage this tax advantage to provide discounted alcohol prices to consumers. During the pandemic, VAT rates for the hospitality sector were temporarily reduced to support businesses. The VAT rate was lowered to 5% in July 2020 and is set to increase gradually to 12.5% between October 2021 and March 2022.

Tim Martin, the founder and chairman of Wetherspoon’s, highlighted the tax disparity between pubs, restaurants, and supermarkets, emphasizing the need for a VAT cut to 12.5% to ensure the survival and growth of pubs, bars, and restaurants. Several prominent hospitality organizations, including UKHospitality, British Beer and Pub Association, and the Campaign for Real Ale (CAMRA), have expressed support for this one-day discount initiative.

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