Pub chain plans a '˜happy day' tax break

The firm is backing Tax Equality Day by cutting the price of all food and soft drinks by 7.5 per cent for that day only, as a way of showing what prices would be like if VAT was pitched lower than its present 20 per cent.

Also involved in the promotion is Wetherspoon’s Esquire House in Anniesland - and city centre bars.

Wetherspoon, run by outspoken founder Tim Martin, says supermarkets which benefit from a zero VAT rate on all food, and use that to sell alcohol products cheaply.

He said: “A reduction in the level of VAT on a long-term basis will generate growth and create jobs in the important leisure and hospitality sector.

“Creating tax equality between pubs, restaurants and supermarkets will fulfil many Government objectives.

“It will create more jobs and it will raise the amount of taxes the Government receive, since pubs and restaurants pay more taxes and create more jobs than supermarkets.

“It’s a win win situation for the Government and our industry.”