TWO Redditch pubs are set to cut the price of all food and drink by 7.5 per cent this Wednesday (September 20) as part of a national experiment.
The Rising Sun in Alcester Street and The Royal Enfield on Unicorn Hill, are backing a national Tax Equality Day, aimed at highlighting the benefit a VAT reduction would have in the hospitality industry.
Prices at the two Wetherspoon pubs will be reduced for one day only, in order to show what it would be like if a VAT reduction was put into place.
At present all food and drink in pubs is subject to 20 per cent VAT, compared to supermarkets which benefit from a zero VAT rate on all food. As a result, supermarkets are able to use that saving to sell alcohol at a cheaper price.
Michael O’Callaghan, manager of The Rising Sun, said: “We are proud to support the campaign to reduce the level of VAT within the pub industry.
“Customers coming to the pubs on Wednesday will find the price of their food and drink is lower than normal – and we are keen to highlight the amount customers would save if VAT in pubs was lowered permanently.
“So, for example, the total price of a meal and drinks for an individual would be reduced from £10 to £9.25 on Tax Equality Day.
“A reduction in the level of VAT on a long-term basis will generate growth and create jobs in the important leisure and hospitality sector and help the high street of which pubs are an integral part.”
All Wetherspoon’s pubs in England, Wales and Northern Ireland will be cutting the price of all food and drink to show their support of tax equality.