Wetherspoons reduces price of fish and chips for one day to highlight benefit of VAT reduction

Pub chain Wetherspoons is to cut the price of fish and chips by 7.5% across all of its outlets tomorrow in a bid to highlight the benefit of a permanent VAT reduction in the hospitality industry.

The move, known as Tax Equality Day, will see cod, chips and mushy peas available for £8.97, a saving of 73p on its usual £9.70. Chip shop curry sauce, black pudding and scampi are also included in the deal which extends across the entire food and drinks menu for one day only. In Scotland, prices will be reduced on food and non-alcoholic drinks, in line with Scottish licensing laws.

While all food and drinks in pubs are subject to 20% VAT, supermarkets pay zero VAT on food, something Wetherspoon’s founder and chairman Tim Martin calls the “biggest threat to hospitality”.

He comments: “The biggest threat to the hospitality industry is the vast disparity in tax treatment among pubs, restaurants and supermarkets.

“Supermarkets pay zero VAT in respect of food sales, whereas pubs and restaurants pay 20%. This tax benefit allows supermarkets to subsidise the selling price of beer.

“Pubs have been under fantastic pressure for decades, because of the tax disadvantages which they have with supermarkets.

“It doesn’t make sense for the hospitality industry to subsidise supermarkets.

“Customers coming to Wetherspoon’s pubs on Thursday 14 September will find the price of their food and drinks to be lower than normal.

“We urge the chancellor to create tax equality between pubs and supermarkets.”