Two Rotherham Pubs' one-day cut price deal

TWO Rotherham pubs are cutting the price of food and drink by 7.5 per cent for one day only – as their national chain owner calls for a permanent VAT reduction for the hospitality industry.

Prices at The Blue Coat in The Crofts, and The Church House in Montgomery Square, Wath, will be reduced on Thursday, September 14 to mark Tax Equality Day in Wetherspoons pubs in a bid to highlight the benefits of a permanent VAT reduction in the hospitality industry.

All food and drink in pubs is subject to 20 per cent VAT.

By comparison, supermarkets pay zero VAT on food, and are able to use that saving to sell alcohol to customers at a discounted price.

Blue Coat manager Adam Gill said: "It is 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.

"It doesn't make sense for the hospitality industry to subsidise supermarkets.

"We urge the Chancellor to create tax equality between pubs and supermarkets."

A Treasury spokesperson said: “The government is providing billions of pounds of support for the hospitality industry, including via Business Rates relief, the Energy Bills Discount Scheme and Draught Relief.

“VAT reliefs are exceptions, not the norm.

“Supermarket food is one such exception, as the government recognises that families shouldn’t bear all the VAT costs of the essentials they rely on.”