JD Wetherspoon, which operates pubs in Birmingham, will reduce the price of all food and drinks by 7.5 per cent for one day only this month. The price cut takes place on Thursday 17 September across all Wetherspoon pubs in England, Wales, and Northern Ireland, in support of Tax Equality Day.
The move is designed to highlight the benefit of a permanent VAT reduction in the hospitality industry. In Scotland, in line with Scottish licensing laws, prices will be reduced on food and non-alcoholic drinks only.
What customers will pay on 17 September
For example, a customer spending £10 on food and drinks will pay only £9.25 on Tax Equality Day. All food and drinks in pubs are subject to 20 per cent VAT, whereas supermarkets pay zero VAT on food and are able to use that saving to sell alcohol to customers at a discounted price.
The company says the one-day reduction demonstrates the impact of a VAT cut to 12.5 per cent, which it argues is needed to ensure pubs, bars, and restaurants do not continue to close, but instead thrive, invest, and create new jobs.
Tim Martin calls for tax equality
Wetherspoon’s founder and chairman, Tim Martin, 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, bars and restaurants pay 20 per cent.
“This tax benefit allows supermarkets to subsidise the selling price of beer. Pubs have been under fantastic pressure for decades, because of the tax disadvantages which they have with supermarkets.
“It doesn’t make sense for the hospitality industry to subsidise supermarkets. 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.
“Customers coming to Wetherspoon’s pubs on Thursday 17 September will find the price of their food and drinks to be lower than normal. We call on the chancellor to create tax equality between the hospitality industry and supermarkets.”
Impact on Birmingham pub-goers
For Birmingham customers, the one-day reduction means a typical round of drinks and a meal will cost noticeably less than usual. The company operates several pubs across the city, and all will participate in the Tax Equality Day price cut.
The initiative comes as the hospitality sector continues to face pressure from higher operating costs and competition from supermarkets. Wetherspoon’s says the temporary reduction is intended to show what a permanent VAT change could deliver for the industry and its customers.
