Pubs cut prices in VAT fight

Several local of pubs and fast-food restaurants are cutting their prices by 7.5 per cent on Wednesday to highlight the VAT disparity between the hospitality industry and supermarkets.

Wetherspoon pubs are among the businesses that will reduce their prices in support of Tax Parity Day, a campaign to show the benefits of a VAT reduction.

The Up Steps Inn and The Squire Knott, both in Oldham, and The Shay Wake in Shaw, are among the Wetherspoon pubs taking part.

At present all food and drink in pubs is subject to 20 per cent VAT, compared to supermarkets which benefit from a zero rate.

David Morgan, manager at The Up Steps Inn, in Yorkshire Street, said: “We are proud to support the campaign to reduce the level of VAT within the pub industry. We are keen to highlight the amount customers would save if VAT in pubs was lowered permanently.

“For example, the total price of a meal and drinks for a customer would be reduced from £10 to £9.25 on Tax Parity Day.”

Wetherspoon chairman Tim Martin added: “A reduction in the level of VAT would generate growth and create jobs.”