THERE is good news for pubgoers this week as Wetherspoon has announced it will be slashing the prices of food and drinks across its pubs this week.

For one day only prices in Wetherspoon pubs will be reduced by 7.5 per cent in a bid to highlight the benefit of a permanent VAT reductions in the hospitality industry.

Prices at the pubs will be reduced on Thursday, September 14, to mark Tax Equality Day - in Scotland, prices will be reduced on food and non-alcoholic drinks, in line with Scottish licensing laws.

For example, a customer spending £10 on food and drinks will pay only £9.25 on Tax Equality Day.

Greenock Telegraph: JD Wetherspoon customers can make a saving on their food and drinks on ThursdayJD Wetherspoon customers can make a saving on their food and drinks on Thursday (Image: Getty)

All food and drinks in pubs are subject to 20 per cent VAT.

By comparison, supermarkets pay zero VAT on food and are able to use that saving to sell alcohol to customers at a discounted price.

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 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.

“Customers coming to Wetherspoon’s pubs on Thursday 14 September will find the price of their food and drinks to be lower than normal.

“We urge the chancellor to create tax equality between pubs and supermarkets.”