JD Wetherspoon to slash prices for a day to urge VAT reduction

JD Wetherspoon is to cut the price of all food and drink in its pubs by 7.5% on 14 September to highlight the "vast disparity in tax treatment" between pubs and supermarkets.

The government slashed VAT to 5% in July 2020 to help hospitality businesses during the pandemic, but this figure was increased to the standard rate of 20% in April 2022.

While the leisure and hospitality sector are subject to 20% VAT, major supermarkets pay zero VAT on food and sell alcohol at a lower price.

Wetherspoon's said it will reduce prices at its pubs for the duration of Tax Equality Day to demonstrate the benefits of an industry-wide cut in VAT.

This would mean that a customer who normally spends £10 on food and drink will pay £9.25 on 14 September.

The pub group's Scottish sites will also see a reduction in costs in food and non-alcoholic drinks, in line with Scottish licensing laws.

Tim Martin, founder and chairman of Wetherspoon's, said: "The biggest threat to the hospitality industry is the vast disparity in tax treatment among pubs, restaurants and supermarkets.

"Supermarkets pay zero VAT in respect of food sales, whereas pubs and restaurants pay 20%."

He added: "It doesn't make sense for the hospitality industry to subsidise supermarkets. We urge the chancellor to create tax equality between pubs and supermarkets."

It comes after the pub chain raised food and drink prices by 7.5% in February off the back of spiralling costs.