Grantham pub to cut price of all food and drink by 7.5 per cent for one day in protest over VAT

A Grantham pub is to cut the price of all food and drink by 7.5 per cent for one day later this month in a protest over VAT.

Prices at The Tollemache Inn in St Peter’s Hill will be reduced for one day only to mark Tax Equality Day in the Wetherspoon pub − to highlight the benefit of a permanent VAT reduction in the hospitality industry.

A customer spending £10 on food and drink will pay £9.25 on Tax Equality Day.

All food and drink in pubs is subject to 20 per cent VAT.

Wetherspoon says 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.

Tollemache manager Steven Hamilton said: "Customers coming to The Tollemache Inn on Thursday, September 14 will find the price of their food and drink is lower than normal.

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.

“The tax benefit allows supermarkets to subsidise the selling price of beer.

"It doesn't make sense for the hospitality industry to subsidise supermarkets.

"We urge the Chancellor to create tax equality between pubs and supermarkets."