MAJOR pub chain Wetherspoon has announced it is slashing its prices as part of Tax Equality Day.

Prices at the chain's sites, which includes Warrington's Friar Penketh, will be slashed by 7.5 per cent on Thursday, September 14.

This is in a bid to highlight the benefit of a permanent VAT reduction in the hospitality industry. 

All food and drink in the hospitality sector is subject to 20 per cent VAT, which impacts how products are priced at pubs.

Warrington Guardian: Tim Martin says that supermarkets are the biggest threat to the hospitality sectorTim Martin says that supermarkets are the biggest threat to the hospitality sector (Image: PA)

Supermarkets are not charged VAT on food and drink, with Wetherspoon's boss Tim Martin saying: "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 per cent.

“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."

The pub chain's boss added: "Customers coming to Wetherspoon’s pubs on Thursday, September 14 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."