The nation’s go-to pub chain is slashing its prices by nearly 10 per cent, for one day only.
You may think Spoons couldn’t get any cheaper, or more cheerful, but on September 13 Wetherspoon’s pubs in England, Wales and Northern Ireland will be cutting the price of all food and drink by 7.5 per cent, and pubs in Scotland offering the same reduction on all food, soft drinks and hot drinks.
The reductions come as part of National Tax Equality Day, which takes place on September 13 and aims to highlight the benefit of a VAT reduction in the hospitality industry.
All food in pubs is currently subject to 20 per cent VAT, compared to supermarkets which benefit from a zero VAT rate on the vast majority of products, meaning pubs pay around 16 pence in business rates per pint versus the two pence supermarkets pay.
Wetherspoon chairman Tim Martin is calling on pub and restaurant operators to show their support for National Tax Equality Day and has the backing of industry organisations, UK Hospitality and the British Beer and Pub Association (BBPA) who are asking their members to join in too.
Mr Martin said:
“Pubs suffer a huge disadvantage paying about 16 pence in business rates per pint versus about two pence for supermarkets.
“In addition, there is a huge VAT inequality and unfairness. A reduction in the level of VAT on a long-term basis will create a level playing field and generate growth and jobs in an important and vital industry – especially in beleaguered high streets.
“We’re aiming to make it the busiest day of the entire year in our pubs and would urge other pub and restaurant operators to participate too.”
UK Hospitality Chief Executive Kate Nicholls, said:
“Tax Equality Day is a great way to highlight just how hospitality businesses are disproportionately hit by VAT.
“The tax disparity between the hospitality sector and supermarkets is still far too high. Pubs are paying around a third of their turnover in tax compared to a fifth for big supermarkets able to sell alcohol at very cheap prices.
“A cut in the rate of VAT for the hospitality sector can help address this unfairness and allow pubs and bars to invest in their businesses and staff members. We hope that everyone will support this year’s Tax Equality Day and send a clear and unequivocal message to the Chancellor to give the sector the VAT cut it deserves.”
And BBPA Chief Executive Brigid Simmonds added:
“Cutting the tax burden on pubs should be a top priority for the Government. We welcome this Tax Equality Day initiative as a way of reminding customers that our pubs are over-taxed and we need action now to hold down the cost of going out.
“VAT reform is long overdue and beer duty and business rates are disproportionately
high for pubs in the UK.”
For more information visit the Wetherspoon’s website.