Harborough Pub To Cut Prices For One Day

A Market Harborough pub is cutting the price of all food and drink by 7.5 per cent tomorrow as part of a campaign calling for a reduction in VAT for the hospitality industry.

The Sugar Loaf on the High Street is supporting Tax Equality Day, organised by its owner JD Wetherspoon.

The Sugar Loaf on the High Street is supporting Tax Equality Day

The company says the one-day price reduction is intended to demonstrate how a VAT cut could benefit customers.

For example, someone spending £10 on food and drinks will pay £9.25 on Thursday.

Food and drink sold in pubs is currently subject to 20 per cent VAT.

Wetherspoon says supermarkets pay zero VAT on food and can use that saving to offer discounted prices on products including alcohol.

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

He said supermarkets’ tax advantage allows them to “subsidise the selling price of beer”.

Mr Martin is calling for VAT to be reduced to 12.5 per cent for pubs, bars and restaurants.

He said: “A VAT cut to 12.5 per cent is needed to ensure that pubs, bars and restaurants do not continue to close, but instead thrive, invest and create new jobs.”