Mr Martin said: “Not every UK hospitality business will be able to reduce prices immediately. Those ads you do see are predominantly from local businesses promoting local services. The move comes as UK pubs aim to highlight the benefit of reduced VAT in the hospitality sector. “These tax differences have helped supermarkets to subsidise their selling prices of beer, wine and spirits, enabling them to capture about half of pubs’ beer sales, for example, in the past 40 years. Wetherspoon is to reduce prices on a range of meals and drinks following the Chancellor’s decision to reduce VAT on food, coffee and soft drinks from 20 per cent to five per cent. Pictures: Wetherspoons/Pixabay/Newsquest. "It doesn’t make sense for the hospitality industry to subsidise supermarkets, which are often on their own, out of town. We urge you to turn off your ad blocker for The Telegraph website so that you can continue to access our quality content in the future. Wetherspoon has cut the price of a pint in its pubs to just £1.29 in what it dubbed "Sunak’s specials" after the Chancellor’s VAT cuts. Wetherspoon founder and chairman Tim Martin said: “Wetherspoon will invest all the proceeds of the VAT reduction in lower prices, spread across both bar and food products, with the biggest reductions on real ale.”. ©JPIMedia Publishing Ltd. All rights reserved. News Corp is a network of leading companies in the worlds of diversified media, news, education, and information services. A pint of Doombar will fall to £1.79, an average reduction of 31p, while Abbot Ale and guest beers will be cut to £1.99. Wetherspoons is a British pub so there is a wide array of alcoholic drinks. explains more about how we use your data, and your rights. Where and when is … J D Wetherspoon plc, also simply known as Wetherspoon, Wetherspoon’s and even just Spoon’s, is among the well-known pub brands in the United Kingdom and Republic of Ireland. “Some will need to retain the benefit of lower VAT just to stay in business. However, alcohol is not included in the tax reduction. Lavazza coffee and tea at the 764 Wetherspoon pubs will be reduced to £1.29 while breakfast prices will be cut by an average of 41p to £3.49. "It will result in far more investment in high streets throughout the land and it will bring in more tax for the government. Chancellor Rishi Sunak last week announced in the mini-Budget that the VAT rate for the hospitality industry will drop from 20 per cent to 5 per cent from July 15. Prices at pubs will be reduced for one day only in a stand against VAT. "The Sun", "Sun", "Sun Online" are registered trademarks or trade names of News Group Newspapers Limited. Supermarkets pay no VAT on food sales while pubs do. Wetherspoon pubs will be cutting the price of all food and drink by 7.5% on Thursday, September 24. If you are dissatisfied with the response provided you can contact IPSO here. They will take part in the scheme on Thursday, September 24. Company founder Tim Martin, said: “Pubs have been under fantastic pressure for decades due to the tax disadvantages they have with supermarkets. The pub chain has said that pubs in England, Wales, Scotland and Northern Ireland will slash prices as part of Tax Equality Day. Unlike the Tax Equality Day discount, the VAT holiday doesn’t apply to alcohol, but the pub chain reduced prices of some ales anyway. As a subscriber, you are shown 80% less display advertising when reading our articles. Our. It's currently 20%, however has been slashed to 5% across hospitality and tourism until January 2021 due to the Covid-19 outbreak. For example, an 11 inch margarita pizza with Pepsi will cost £5.08. Pub chain JD Wetherspoon is knocking 7.5 per cent off its food and drink prices next Thursday (24 September). What will the price cuts get you? The chain says all price reductions, which it will apply to real ale, coffee, soft drinks, breakfasts, burgers and pizzas, will be fully implemented by July 20. The same levy isn't applied to most food items sold in supermarkets. It is important that we continue to promote these adverts as our local businesses need as much support as possible during these challenging times. The price cut will reduce the price of a beer and burger meal at Wetherspoons from £6.29 to £5.82. The company is to fully pass on the tax benefit to its customers, starting on Wednesday 15 July. The price cut will reduce the price of a beer and burger meal at Wetherspoons from £6.29 to £5.82. The company said pubs in England, Wales, Scotland and Northern Ireland will slash prices as part of Tax Equality Day, aimed at highlighting the benefit of a permanent VAT reduction in the hospitality industry. What has Tim Martin said about the price cuts? Thanks to the reduction, a pint of Ruddles bitter will cost £1.29, down 50p from £1.79. Chancellor Rishi Sunak has also announced a scheme to support restaurants which allows diners to claim 50 per cent off meals on Monday to Wednesday up to a maximum saving of £10. Prices at the company’s other 103 pubs, located in city centres, airports and stations, will be around £1 higher, but will still be reduced, Wetherspoons said. All food and drink sold in pubs is usually subject to 20 per cent VAT. Wetherspoon has cut the price of a pint in its pubs to just £1.29 in what it dubbed "Sunak’s specials" after the Chancellor’s VAT cuts. “Wetherspoons has campaigned for tax equality between pubs, restaurants and supermarkets for many years. WETHERSPOONS is set to slash food and drink prices by up to 28 per cent this week due to a VAT cut. This is set to continue until January 12, 2021, when it will return to 20%. He said pubs are at a "disadvantage" compared to high street retailers. It comes after Wetherspoons and other pub chains hiked drink prices when boozers reopened to customers earlier this month. The move will see prices on a range of meals and drinks reduced from Monday to Wednesday until November 11. Newsquest Media Group Ltd, Loudwater Mill, Station Road, High Wycombe, Buckinghamshire. VAT - or value added tax - is a consumer tax that applies more or less to all goods and services that are bought and sold for use or consumption in the European Union. The price cut is taking place on Thursday, September 24, 2020. At Samuel Smith pubs the price of … In Scotland, prices will be reduced on all food, non-alcoholic and hot drinks, but not alcoholic drinks, due to licensing restrictions. This service is provided on News Group Newspapers' Limited's Standard Terms and Conditions in accordance with our Privacy & Cookie Policy. ©Copyright 2001-2020. “However, lower VAT and tax equality will eventually lead to lower prices, more employment, busier high streets and more taxes for the Government.”. The day is aimed at highlighting the benefit of a permanent VAT reduction in the hospitality industry. How to sign up to our newsletter to get the latest headlines from the M.E.N. Wetherspoon founder and chairman Tim Martin said: "Pubs have been under fantastic pressure for decades due to the tax disadvantages they have with supermarkets. 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"It is well known that taxes should be fair and equal – government does best when it doesn’t discriminate between different types of businesses which sell the same products.".