Peterborough pubs cut prices for Tax Equality Day

The College Arms in Broadway and The Draper’s Arms in Cowgate - as well as The George Hotel in Market Place, Whittlesey, and the Ivy Wall in New Road, Spalding - are supporting Tax Equality Day on September 24, aimed at highlighting the benefit of a permanent VAT reduction in the hospitality industry.

Prices at the Wetherspoon pubs will be reduced for one day only.

At present all food and drink in pubs is subject to five per cent VAT as a result of the VAT cut by the Chancellor on July 15 to help combat the effects of the long lockdown period.

However, this is only set to continue until January 12 next year, when it will return to 20 per cent.

By comparison supermarkets benefit from a zero VAT rate on all food. As a result, supermarkets are able to use that saving to sell alcohol at a discounted price.

The Draper’s Arms manager, Christopher Parkes, said:”We are proud to support the campaign to reduce the level of VAT within the hospitality industry.

“Customers coming to the pubs on Thursday September 24 will find the price of their food and drink is lower than normal.

“Pubs have been under fantastic pressure for decades due to the tax disadvantages we have with supermarkets.

“We’re very grateful to the Chancellor for reducing the tax disparity between supermarkets and pubs to five per cent. We are urging the Chancellor to create tax equality between pubs and supermarkets by making the

current VAT regime for pub food and soft drinks permanent.

“This move will make pubs, cafes, coffee shops and restaurants more competitive against supermarkets. Permanent tax equality will result in far more investment in high streets and it will bring more tax for the government from the extra investment and increased jobs.

“It doesn’t make sense for the hospitality industry to subsidise supermarkets, which are often on their own, out of town.”