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

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.

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5 Comments

  1. Like the acorn good choice of real ale pleasant staff, could do with the closed premises nextdoor to make the place bigger

  2. I’m confused. Did Wetherspoon pubs cut their prices when VAT was reduced to 5%? If not, why are they increasing them when the temporary cut comes to an end?

  3. It’s the worst pub in lichfield in my opinion they made us wait a hour for a breakfast then told us it will be another 30 minutes and didn’t get a resolution in our complaint so we left, even the reduction in price won’t make me go there.

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