A Lichfield pub is to cut the price of all food and drink as part of a campaign to highlight the benefit a permanent VAT reduction could have on the hospitality industry.
The Acorn Inn on Tamworth Street will drop prices by 7.5% on 23rd September to make Tax Equality Day.
It will mean a pint of beer costing £1.99 will be reduced to £1.84 and a breakfast costing £3.59 will cost £3.32 on the day.
At present all food and drink in pubs is subject to 5% VAT as a result of the cut in July 2020. However, this will change on 1st October 1, when the rate will rise to 12.5%, with the Government’s aim of returning VAT to 20% in stages in 2022.
The pub’s manager, Sharon Owen, said:
“It is unfair that supermarkets pay zero VAT on food, but pubs and restaurants, in normal circumstances, pay 20%.
“Pubs have been under fantastic pressure for decades due to the tax disadvantages it has with supermarkets.
“Customers coming to The Acorn Inn on 23rd September will find the price of their food and drink is lower than normal. However, as a result of the VAT increase to 12.5% on 1st October, we will have to increase food prices. “Therefore, on 29th September, we will increase prices on our meals by 50p.
“We urge the Chancellor to create tax equality between pubs and supermarkets by making the current VAT regime for pubs permanent.”Sharon Owen, The Acorn Inn
The reduction is being applied across JD Wetherspoon pubs across the country as part of the campaign.