A WELLINGTON public house is to cut the price of all food and drink by 7.5 per cent on Thursday (September 18) to highlight what a permanent VAT reduction would mean to the hospitality industry.

Prices at the Iron Duke, in Fore Street, will be reduced for one day only to mark ‘Tax Equality Day’ in the Wetherspoon pub.

So, for example, a customer spending £10 on food and drink will only pay £9.25 on ‘Tax Equality Day’.

At present, all food and drink in pubs is subject to 20 per cent VAT.

A Wetherspoons spokesperson said: “By comparison, supermarkets pay zero VAT on food, and are able to use that saving to sell alcohol to their customers at a discounted price.

"Customers coming to the pub on Thursday will find the price of their food and drink is lower than normal.

"It is unfair that supermarkets pay zero VAT on food, but pubs pay 20 per cent.

"Pubs have been under fantastic pressure for decades due to the tax disadvantages they have with supermarkets.

"The tax benefit allows supermarkets to subsidise the selling price of beer.

“A VAT cut to 12.5 per cent is needed to ensure that pubs continue to thrive.

"We urge the Chancellor to create tax equality between pubs and supermarkets."