A BROMSGROVE pub is to cut the price of all food and drink by 7.5 per cent on Thursday September 23 to highlight the benefit of a permanent VAT reduction in the hospitality industry.

Prices at The Golden Cross Hotel On High Street will be reduced for one day to mark Tax Equality Day in the Wetherspoon pub.

At present all food and drink in pubs is subject to five per cent VAT as a result of the VAT cut by the Chancellor in July 2020.

However, this will change on October 1, when the VAT rate will rise to 12.5 per cent, with the government's aim of returning VAT to 20 per cent, in stages, in 2022

So, for example, a pint of beer costing £1.99 will be reduced to £1.84

The pub's manager, Cassie Harwood, said: "It is unfair that supermarkets pay zero VAT on food, but pubs and restaurants, in normal circumstances, pay 20 per cent.

"Pubs have been under fantastic pressure for decades due to the tax disadvantages it has with supermarkets.

"Customers coming to The Golden Cross Hotel on Thursday September 23 will find the price of their food and drink is lower than normal.

"However, as a result of the VAT increase to 12.5 per cent on October 1, we will have to increase food prices.

"Therefore, on Wednesday September 29, we will increase prices on our meals by 50p.

Wetherspoon’s chairman, Tim Martin, said: “Taxes should be fair and equitable.

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“We urge the chancellor to create tax equality between pubs and supermarkets by making permanent the current VAT régime for pubs.

“He should note that the main impact of tax inequality is on high streets and town and city centres, which depend heavily on a diversity of prosperous hospitality businesses for economic, social and employment success.”