TWO Tameside pubs are knocking a chunk off the price of food and drinks for one day only this week.
Bosses have hailed it as ‘Tax Equality Day’ as they hope to raise awareness of the tax disparity between pubs and supermarkets.
On Thursday, September 18, The Ash Tree in Ashton-under-Lyne and The Society Rooms in Stalybridge will cut the cost of all food and drinks by 7.5 per cent.
That means a £10 bill will come in at £9.25 – which is a small saving but Wetherspoon’s hopes it will make a point about the tax pressures pubs face.
Currently, UK hospitality businesses – including pubs, restaurants, cafes and bars – have to pay the standard rate of 20 per cent of Value Added Tax (VAT) on food and drink sales.
This was reduced by the government during the Covid-19 pandemic but increased from 12.5 per cent to the original rate of 20 per cent in 2022.
However, most food and drink sold by supermarkets to be consumed at home incurs no VAT – which applies to most goods and services.
Liza Braddock, manager of The Society Rooms, said: “Customers coming to the pub on Thursday September 18 will find the price of their food and drink is lower than normal.
“It’s 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 it has 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.”