In a bid to highlight the benefits of a VAT reduction across the hospitality industry, all J.D Wetherspoon outlets in England, Wales and Northern Ireland will be cutting the price of all food and drink by 7.5 per cent, for one day only!
Backed by leading industry organisations and MP’s alike, the pub-chain’s chairman, Tim Martin, hopes the mass price reduction on Thursday 13th September will send a message to the Chancellor Phillip Hammond by emphasising the inequalities experienced within the sector when it comes to taxation.
Business rates and VAT have long been a bone of contention between the industry and the government, with the current system often being accused of having a direct influence on the alarming rate of pub-closures, recently estimated to be as many as 18 per week.
Currently, UK pubs are paying around a third of their turnover in tax compared to a fifth for big supermarkets, this means pubs are paying about 16 pence in business rates per pint versus about two pence for supermarkets. Supermarkets also benefit from a zero VAT rate on the vast majority of food products.
UK Hospitality Chief Executive Kate Nicholls, said: “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.”
So, cheap beers and supporting fairer treatment of the pub trade. There’s worse reasons to go for a pint. Just remember to leave the dog at home.